FORECASTS for growth next year will be almost flat next year at 0.7%, down from the 2.5% forecast earlier this year.
Growth for this year will reach 0.9%, down from the firecast of 1.7%. But there will be 3% by 2015.
Osborne said: “Debt challenge greater than we thought because the boom was even bigger and bust was even deeper.”
Osborne said borrowing is falling but not at the rate forecast.