BUDGET: Unemployment and borrowing to fall, says Osborne

The forecast unemployment rate is forecast to fall, with claimant counts falling too, Mr Osborne says. Inflation will fall to 1.9% by next year.

Borrowing this year will be £126bn this year and £120bn next year, Osborne says. It will be £21bn by 2016/17, he tells MPs.

On the deficit, Mr Osborne says it is falling and will reach 7.6% next year. The share of GDP taken by the state will fall to 43% next year, he adds.