UK Budget 2014: Everything you need to know

[Anthea]

Telegraph

UK Budget 2014: Everything you need to know

Growth this year will hit 2.7%. It was forecast to be 1.8% in the last budget - the biggest upwards revision to growth forecasts in 30 years.

But growth in 2016 and 2017 is going to be lower than previously forecast. That is because the "output gap" - the measure of how much unused power there is engine of the economy - is going to be closed earlier than previously thought.

The State is still spending more than it takes in taxation, and is set to until 2018, when it will run a small surplus. But improved growth means the picture is rosier than it was in the last budget - Britain will be borrowing £12bn less this year than was expected.

Britain's debts as a share of GDP will not peak until the year after the election, at 78% of GDP. That's considerably rosier than last year's forecast - peaking at 85.6%. But it will be expensive: the interest on Britain's debts will hit £75bn a year in 2018, with much of the money flowing to overseas fund managers. That's equivalent to business rates, fuel duty and council tax last year put together.

The Tories' key message at the next election: the nation's finances are still in a pickle and only they can pick up the pieces. That leaves little room for giveaways.

Full important article for those in UK:

http://www.telegraph.co.uk/finance/budg ... -know.html