The OBR revised down its growth forecasts further, compared to those in the Autumn Statement. As a result the budget deficit will remain higher for longer, with projected public borrowing of around £42bn in 2017/18 and the cumulative public debt stock being around £100bn higher in 2018 than was projected at the time of the Autumn Statement. Nonetheless, the chancellor was able to find room for a modest boost to growth up to 2015 through higher personal tax allowances and cuts in fuel and beer duties and the corporate tax rate. There will, however, be more pain to come after 2015.
