According to a new report released, the total Government borrowing is expected to be£45billion lower than expected during the coming few years.

The report said that the total deficit will be £8billion to £9billion lower than expected in the Budget in March during 2013-14. Ernst & Young Item Club said that the total borrowing will be £9billion lesser than estimated each year until
2017-18 backed by strong growth in the economy. The global think-tank also said it expects its economy to grow from 1.1 per cent to 1.4 per cent and for next year from 2.2 per cent to 2.4 per cent.

The report will be a boost for UK's Chancellor George Osborne and validate his position on the economy. Osborne has been able to convince various sections that his plans for the economy are working and the UK economy is showing strong signs of recovery. The independent Treasury watchdog, The Office for Budget Responsibility is likely to back Osborne with its forecasts for the economy and the public finances.

Peter Spencer, chief economic adviser to Item, said: `The recovery in the UK now appears to be firmly entrenched. The OBR is likely to upgrade its growth forecast and revise down the borrowing forecast in the upcoming Autumn Statement at the end of the year."