Creating lasting prosperity requires the economy to change
and to rebalance from unsustainable public spending towards exports and
investment. The Government has set out a clear plan to address the
significant challenges facing the UK economy and the public finances.
The June Budget 2010 and the Spending Review 2010 took the first steps
in implementing this plan by taking rapid action to address the record
level of borrowing that the Government inherited.
Building on this, the Budget announces further action that supports
private sector-led growth while keeping the plan to tackle the deficit
on track. This balance is achieved because the package of measures
announced in the Budget will have a neutral net effect on the public
The Independent Office of Budget Responsibility’s judgement is that the
Government is on track to meet its fiscal mandate of eliminating the
structural current deficit and placing debt on a downwards path by the
end of this Parliament.