George Osborne election budget: Deficit drops as chancellor drastically changes surplus forecast

Chancellor George Osborne has said the deficit is to fall at a faster-than-expected rate over the next four years and the squeeze on public spending is set to end early as Osborne makes radical changes to the surplus.

As part of the 2015 budget, Osborne said the deficit is falling at a quicker rate than expected and it will fall to 4% in 2015-16, 2% the following fiscal year, before dropping to 0.6% in 2017-18, and going into surplus a year later.

The purse strings will be eased as Osborne stated the surplus in 2019-20 will be £7bn, 0.3% of GDP – well below the £23bn previously forecast in the Autumn Statement. As a result, Osborne said, the squeeze on public spending will end early.

Osborne said, following five years of the coalition government, the deficit stands at half of what David Cameron and co inherited.

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