Budget 2012: Borrowing to reach £126bn this year, says Osborne

The UK government will borrow £126 billion this year, says George Osborne.

UK government borrowing will fall to £120 billion next year, excluding the transfer of Royal Mail pension assets, and will come down to £21 billion by 2016/17.

The chancellor says borrowing estimates, which are £11 billion less than were predicted in the autumn, will be used to pay down debts.