UK’s Reeves outlines new budget deficit forecasts

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(Reuters) – Finance minister Rachel Reeves on Wednesday forecast Britain’s budget deficit would come to 26.2 billion pounds ($33.9 billion) in the 2025/26 financial year, citing new projections from the Office for Budget Responsibility.

That would swing into a surplus of 10.9 billion pounds in 2027-28, she said.

Government borrowing was projected to be at 127 billion pounds in the current financial year, she said, adding that borrowing was expected to fall from 4.5% of economic output this year to 2.1% of GDP by the end of the forecast period.

Public sector net borrowing will be 105.6 billion pounds in 2025-26 before coming down to 70.6 billion pounds in 2029-30, she said.