Budget 2005 Summary Leaflet | Maintaining a stable economy

			Budget 2005 Summary Investing for our future: Fairness and opportunity for Britain's hard-working families


Homepage Key Budget measures include Maintaining a stable economy High quality public services	Productivity and enterprise in a flexible economy Employment opportunity for all Building a fairer society Protecting the environment	Household income Where taxpayers' money is spent Further information Visit HM Treasury Site

Following downturns in many major economies, the world economy strengthened in 2004 and in the early part of this year, though a number of global economic risks remain. The Government's economic reforms have helped the UK to maintain macroeconomic stability and continue to grow throughout this challenging period for the global economy. The Budget projections show that:

the economy is expected to grow by 3 to 3½ per cent in 2005, as forecast in Budget 2003 and Budget 2004;
inflation is set to remain low and close to the Government's target; and
the public finances remain sound and the Government is on track to meet its fiscal rules, borrowing is forecast to be £34 billion in 2004-05 and debt is lower than the US, Japan, Italy, France and Germany.