Osborne's politically astute Budget

George Osborne's Budget promised to reform the economy so that 'we have enduring growth and jobs for the future'. So how did he fare?

Chancellor George Osborne's Budget promised to reform the economy so that "we have enduring growth and jobs for the future". There were no significant changes to the deficit-reduction plans the government set out last year. While the Office of Budget Responsibility (OBR) lowered its growth forecast for this year from 2.1% to 1.7%, and for 2012 from 2.6% to 2.5%, it expects stronger growth in subsequent years than it has previously forecast. This will help offset an increase in expected borrowing levels for each year of this parliament, a result of higher spending on inflation-linked benefits. The OBR reckons the government's fiscal plans are still on track.

The fiscally neutral "pro-growth" Budget contained measures to encourage enterprise. These include a reform of the planning system and more money for apprenticeships. The surprise was the introduction of a "fair fuel stabiliser", whereby oil company profits are taxed if oil rises above a certain level, funding a reduction in petrol duty. If oil falls, the companies get a refund.

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