Britain set to have a surplus of £10.4bn in 2019-20, Osborne says in Budget

Osborne said the Office for Budget Responsibility expects debt to be 82.6% of gross domestic product (GDP) next year, followed by 81.3% in 2017/18.

In 2018/19 debt is forecast to be 79.9% of GDP, then 77.2% in 2019/20 and 74.7% in 2020/21.

The Chancellor said the deficit was 11.1% when he took office.

In an effort to cut debt, Osborne said the government plans to cut spending.

He said the government was spending 45% of GDP in 2010 and in the last parliament it was brought down to 40%.

Spending is due to reach 36.9% of GDP by end of the decade – the same as what the government raises through taxation, Osborne said.