office of budgetary responsibility

Revised Economic Growth Forecasts “more realistic”

Business groups have cautiously welcomed the Office for Budget Responsibility’s (OBR) move to downgrade the UK economic growth forecast for 2011, calling the figures “more realistic” than previous predictions. The new independent fiscal watchdog, created by HM Chancellor George Osborne to monitor public finances, calculated that the economy will expand by 2.6 per cent next year, down from the 3.25% previously estimated by HM Treasury in Labour’s last Budget.   Uncertainty over bank lending, an unstable euro and a fragile labour market were all cited as reasons for the downward growth forecast by the OBR’s chairman, Sir Alan Budd.  According to Confederation of British Industry (CBI) director-general, Richard Lambert, the OBR’s report brought a ... »