Pre-Budget Report 2005 Summary Leaflet

			Pre-Budget Report 2005 Summary Britain meeting the global challenge: Enterprise, fairness and responsibility


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The world economy has slowed in 2005, in part due to a sustained rise in global oil prices. The slowdown has particularly affected advanced economies, including the major European countries that the UK exports to. The Government's economic reforms have helped the UK to maintain macroeconomic stability and continue to grow through this challenging period. The Pre-Budget Report shows that:

the economy is expected to grow by 13¼4 per cent in 2005, picking up to 2-21¼2 per cent in 2006 and 23¼4-31¼4 per cent in 2007 and 2008;
inflation is set to remain low and stable; and
the public finances remain sound and the Government is meeting its fiscal rules. Borrowing is forecast to be £37 billion in 2005-06 and is set to fall further, and debt is lower than the US, Japan, Italy, France and Germany.

The global economy is undergoing a major transformation, with far-reaching and fundamental changes, driven by advances in technology, greater international trade and investment and rapid growth in many emerging markets, such as China and India. The Government's economic and policy reforms are aimed at ensuring the UK is well-placed to prosper in this changing global economy.