Budget: Cuts and taxes will 'balance books' by 2016

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Chancellor George Osborne has outlined the government's plans to "balance the books" by 2016.

Mr Osborne said the government would cut the structural budget deficit to zero in the next six years.

But he said the Office for Budget Responsibility had forecast the government would meet this target a year early, by 2015.

It is now forecasting the UK economy will grow by 2.3% in 2011, down from the 2.6% growth rate predicted previously.

READ MORE: The Budget, June 2010