To ask His Majesty's Government what assessment they have made of the implications of the forecast in the Office for Budget Responsibility report Economic and fiscal outlook, published on 30 October, that Government borrowing for the financial year 2028–29 is projected to rise from £39.4 billion as projected in March this year to £71.9 billion as projected in October.
Answered on
14 November 2024
The Government inherited a challenging fiscal position, with £22 billion of in-year spending pressures. The effect of these pressures was apparent in published public sector finances data, where current spending for the first half of the year is £11.8 billion higher than predicted in the OBR’s March 2024 forecast profile.
The decisions taken at Autumn Budget 2024 set realistic plans for public spending while putting the public finances on a sustainable path. Government borrowing (PSNB) peaks at 4.5% of GDP in 2024-25, then falls every year to reach 2.1% of GDP in 2029-30.
The Government has confirmed robust fiscal rules to put the public finances on a sustainable path. The independent OBR have confirmed that the fiscal rules are met two years early, in 2027-28.