Extra £20bn public cash needed to curb UK's debt - PwC

Treasury projections based on average GDP growth of 3.25% from 2011/12 through to 2014/15 are "well above" average independent forecasts of only around 2.5% per annum, according to PwC's latest UK Economic Outlook report. The accountancy firm believes in a "more cautious" view of medium-term growth from 2008/9 of 2.25% a year. PWC also expects public sector borrowing to remain at around 5% of GDP in 2014/15, as compared to the latest Treasury forecast of a 4.4% budget deficit. John Hawksworth, head of macroeconomics, says: "Public borrowing in the medium-term could therefore exceed...