UK borrowing and growth better than expected for budget, says report

Chancellor's March budget will show revised forecasts in short term, according to EY Item Club

Britain's economic growth and borrowing levels will both be better than previously expected when the chancellor gives his budget next month, according to a report.

The economic forecasting group EY Item Club said stronger-than-expected tax receipts meant the Office for Budget Responsibility was likely to cut its borrowing forecast for the current year by 3bn to 65bn on budget day. The fiscal watchdog was also likely to revise its GDP forecast up from 1.4% to 1.6%, or 1.7%, it said.