Pre-Budget update 5

Dec 9 2009 By Andrew Mernin

Next year, UK growth forecast to be between 1% and 1.5%, as said at the Budget.

Budget forecast of growth of 3.5% in 2011 and 2012 remains unchanged, but not dependent as much on the financial sector.

Consumer inflation will rise from 1.5% to around 3% early next year before falling back.

Revenues from stamp duty and income tax are sharply down. But banks are in a much more stable situation, meaning the provision for any potential impact on the public finances revised down from £50bn to around £10bn.

Government to ensure public sector net borrowing as a share of GDP falls every year and is more than halved by 2013/14 and net debt as a share of GDP to be falling in 2015/16.