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Autumn Statement – The economic picture

The Office for Budget Responsibility (OBR) has revealed that the public finances are on course to be £27 billion higher than they were at the July Budget.

Chancellor George Osborne announced in his Autumn Statement that this is due to both lower interest payments on debt and improved tax receipts.

He confirmed that a proportion of this £27 billion will be spent on infrastructure investment, adding that the Government could now borrow a total of £8 billion less than the sum previously forecast.

Additionally, Osborne revealed that the deficit level will drop to 3.9% this year, with the rate estimated to fall to 2.5% next year. It is predicted to reach 1.2% during 2017/18, before moving into a surplus in 2019/20 of 0.5% of national income.

This surplus is predicted to reach an overall total of £10.1 billion, bringing Britain ‘out of the red and into the black’.

The Chancellor also revealed that the UK economy is expected to grow by 2.4% this year and by 2.4% in 2016 and 2.5% in 2017.