Budget 2010: How did economists react?

George Osborne forecast slower UK GDP growth in the next five years - 1.2% this year and 2.3% 2011, followed by 2.8% in 2012, 2.9% in 2013 and 2.7% in 2014 and 2015. The 2.6% forecast for 2011 is down from the 3%-3.5% estimate made in the last Labour Budget three months ago. Keith Wade, chief economist at Schroders, has reduced his growth forecasts due to the VAT rise. He initially anticipated 2.4% growth in the UK by the end of the year, but has reduced this to 2.2% because the rise was higher than he expected. Wade says the hike from 17.5% to 20% was tough, as he had anticipat...