The chancellor is to predict a 3 per cent economy shrink and a borrowing high of £175 billion
When he delivers the Budget this afternoon, the chancellor is expected to predicted the UK’s economy will shrink by 3 per cent this year and public borrowing will rise to a peacetime high of £175 billion
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Media reports yesterday revealed that Darling plans to announce a £1 billion emergency housing package to provide a stimulus, but what else can we expect from today’s budget, apart from confirmation that Britain is in the worst recession since the end of World War II?
According to the Financial Times, there will be a ‘£1 billion 1980s style community work programme’ to get under-25s off the dole. It also predicts Darling will be ‘forced to issue more than £200 billion worth of government bonds this financial year, more than £50 billion higher than the Debt Management Office estimated last month.’
The Guardian predicts a ‘Bugdet for jobs’, which is timely considering the latest figures from the Office For National Statistics reveal the number of jobless stands at 2.1 million, having risen by 177,000 in the three months to February.
The BBC’s expected announcements in the budget include:
- Growth forecast revised down
- £15 billion ‘efficiency savings’
- £1 billion to boost housing market
- £2 billion aid for young unemployed
- Car scrapping scheme
- Borrowing increased
- Cost of banking bailout to the taxpayer likely to reach £60 billion