The Budget 2013 - What Happened?

George Osborne delivered a politically adept speech against a backdrop of grim economic news, introducing tax cuts for business, a boost for home buyers and help for the 'squeezed middle' at a net cost of £140m, avoiding the cardinal sin of increasing net borrowing.

The OBR was quoted extensively with downward revisions in near term growth forecasts, with rosier projections two to three years out, a pattern established over successive budgets. Today's Matt Cartoon, takes a humorous look at the forecast credibility problem. http://jsy.fi/164maTI

There was a rabbit out of the hat with a forecast improvement in deficit reduction, now down by a third, although borrowing in 2013 will be the same as last year. However, in 2010 the Chancellor predicted the deficit would be down to £20bn by 2015, it is now forecast to be £96bn, almost five times as much. This means the national debt will keep rising well beyond this Parliament reaching £25,000 per head or circa