UK growth forecast downgraded to 2.6%

The newly-formed Office for Budget Responsibility (OBR) has downgraded the UK's economic growth projections for next year.

It predicts the economy will expand 2.6% in 2011 - down from the 3.25% growth rate predicted by previous Chancellor Alistair Darling in Labour's last Budget. The lower growth forecast comes before George Osborne (pictured) delivers his emergency Budget next week and will add pressure on the new Chancellor to make drastic cuts on public spending. However, the OBR, created by Osborne so growth figures are not "fudged", also said it expects the UK's public deficit in 2010/11 to fall to 10.5% of GDP - a decrease from the 11.1% estimated by the last Labour Government. David Cameron made...