Osborne unveils “budget for growth”

Chancellor George Osborne has unveiled what he describes as “a budget for growth” despite cutting the forecast for economic growth.


Presenting his second budget to Parliament, Osborne says that the economy would grow by 1.7% in 2011 and 2.1% next year. November estimates put growth at 2.1% and 2.6% respectively.

Inflation, he adds, would remain above target at between 4 and 5% this year before dropping to 2.5% in 2012. Rising oil prices were blamed.

To stimulate growth in the economy, Osborne announced that corporation tax will be cut by 2 percentage points to 26% from April, up from the 1 point originally planned. A levy on banks will pay for it.

Osborne, in a bid to bolster faltering consumer confidence amid concern over price rises, also announced a 1p per litre cut to fuel duty, while the 4p per litre rise planned for April was scrapped. It will be paid for by a £2bn tax on North Sea oil and gas.

Measures to cut the regulatory burden on start-ups were also promised, while the number of enterprise zones, which offer discounted business rates, will be increased from 10 to 21.

The Government remains committed to clearing the bulk of the budget deficit by 2015, Osborne says, despite admitting that public borrowing will not fall as steeply over the next four years as was hoped.

Rafts of measures were unveiled in an emergency budget in June last year designed at cutting public spending, including freezing spending on marketing.

Osborne told MPs: “Last year’s emergency budget was about rescuing the nation’s finances, and paying for the mistakes of the past.

“Today’s Budget is about reforming the nation’s economy, so that we have enduring growth and jobs in the future.”

Labour leader Ed Milliband, however, says the reduced growth forecast was proof that the focus on cutting the deficit was not working.

Business body the CBI welcomed the budget, adding that it “will help businesses grow and create jobs”.

Budget basics

  • 1p per litre cut to fuel duty
  • Tobacco duty to increase 2% above inflation
  • 4p per litre rise in duty planned for April scrapped
  • No personal tax increases
  • 50% top rate of tax to stay
  • Corporation tax to be cut by 2 percentage points
  • Alcohol duty escalator to stay meaning price rises likely
  • 21 enterprise zones to be created
  • Measures to help 10,000 first-time buyers get on the property ladder

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here