Budget 2010: Osborne slashes UK growth forecast

Unveiling what he called an "unavoidable" Budget, Osborne said economic growth this year would be 1.2%, in line with Darling's forecasts in March of between 1% and 1.25%. But, in 2011, Osborne said growth would be 2.3%, much lower than Darling's estimate of between 3% and 3.5%. After that, GDP growth will be 2.8% in 2012, 2.9% in 2013 and 2.7% in both 2014 and 2015. Elsewhere, Osborne said the UK is set to miss the previous government's "golden rule" - of borrowing only to invest over the economic cycle - in the current cycle by £485bn. Consumer price inflation is expected to re...