Budget: Osborne on target for surplus by 2020

George-Osborne-walking-up-steps-700.jpgChancellor George Osborne has announced targets for the UK to be running a surplus of £10.4bn for 2019/20, but borrowing will be higher in the coming three years.

In this year’s Budget, borrowing forecasts have been revised, with the expectation for 2015/16 now at £62.2bn from the £73.5bn announced in the Autumn Statement.

Borrowing will be £55.5bn in 2016/17, up from £49.9bn, and £38.8bn in 2017/18, significantly up on the £24.8bn previously predicted. The £10.4bn surplus forecast for 2019/20 is up on the £10.1bn previously predicted, while 2020/21 will see a £11bn surplus, down on the £14.7bn previously predicted.

Osborne announced forecast debt as a share of GDP has been revised up over the next five years to 82.6 per cent this year, to 81.3 per cent in 2017/18, 79.9 per cent in 2018/19, 77.2 per cent in 2019/20 and 74.7 per cent in 2020/21.

In cash terms debt has been revised down by £9bn for 2015/16.

“In cash terms the national debt is lower than forecast in the Autumn,” Osborne said.

With regard to the surplus, he said: “We put the next generation first.”