Setting the scene for Osborne’s speech

George Osborne will make a brief statement to the house this afternoon, responding to the Office for Budget Responsibility’s revised growth forecasts. Reuters reports:

‘As expected, the Office for Budget Responsibility raised its 2010 growth forecast to 1.8 percent from its 1.2 percent June forecast to factor in a surprisingly strong performance in the middle of the year.’

The upgrade fuels Osborne’s positive narrative: the coalition pulled Britain from the abyss and international confidence in Britain’s economy is growing. These forecasts vindicate the government’s ‘cut with care’ strategy. Concrete savings are now being made and they enable the Chancellor to announce that public sector net borrowing will fall. Reuters again:

‘The watchdog shaved its estimate for public sector net borrowing for the fiscal year 2010/11 to 148.5 billion pounds from 149 billion pounds. Its forecast for 2011/12 was 117 billion pounds, slightly up from the 116 billion seen in June.