Portrait of the week | 3 December 2011

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Public borrowing will exceed previous forecasts by £5 billion this year, £19 billion next year and £30 billion in 2013-14, George Osborne, the Chancellor of the Exchequer, said in an Autumn Statement delivered under dark clouds. The ratio of debt to GDP would rise to a peak of 78 per cent in 2014-15. He noted that the Office for Budget Responsibility (OBR) had revised forecasts for growth this year to 0.9 per cent (from the 1.7 per cent predicted in March), and for next year to 0.7 per cent. There would be a 1 per cent cap on public sector pay rises, he said. The 3p rise in fuel duty due in January was cancelled, but a 3p rise would come in next August. With the OBR forecast for public sector job losses revised to 710,000 (from 400,000), Mr Osborne announced a ‘credit easing programme’ to underwrite £40 billion in loans to small and medium-sized firms.