World Business

UK's new budget office to cut growth forecast

(Agencies)
Updated: 2010-06-14 16:03

LONDON: Britain's new Office for Budget Responsibility is due to publish its first forecasts for economic growth and public finances, and the outlook is expected to be gloomier than the previous government's estimates.

Related readings:  UK leader: Budget cuts to be harsher than he'd feared  Britain unveils plans to cut record deficit  Britain's new Cabinet holds first meeting to tackle deficit

It's expected that the agency, created by the new coalition government, will forecast gross domestic product growth of 2.5 percent in 2011, down from the previous estimate of 3.25 percent.

The new forecasts will set the stage for Prime Minister David Cameron's government to introduce an emergency budget next week, setting out the first plans for cutting spending and raising revenue to shrink a record deficit.