Pre-Budget update 6

Dec 9 2009 By Andrew Mernin

Public sector net borrowing forecast to be £178bn this year and £176bn next year, higher than Budget forecasts.

Net borrowing falls to £140bn, £117bn and reaches £96bn in 2013/14, before falling to £82bn in 2014/15.

As share of GDP, borrowing will be 12.6% this year, 12% next year, then 9.1%, 7.1%, 5.5% in 2013/14 and falls to 4.4% in 2014/15.

Net debt forecast to reach 56% of GDP this year, 65% next year, 78% by 2014/15.

Enterprise Finance Guarantee scheme for bank loans to small businesses to be extended for a further 12 months, guaranteeing a further £500m of loans.

Government to double its commitment and finance four carbon capture and storage demonstration projects.