House of Commons Paper Ser.

The Committee's report considers the main points of the 2003 Budget report (HC 500, session 2002-03; ISBN 0102921334). Conclusions drawn include: 1) the growth rate of 1.8 per cent was lower than that forecast in the 2002 budget, although the UK economy performed better than any other major European economy. Although the Treasury's forecasts for 2003 are similar to most other forecasting bodies, its forecasts for 2004 are more optimistic than many others. The Committee recommends that the Treasury should consider commissioning a technical review of its forecasting procedures to reinforce its reputation in the area of economic forecasting; and 2) public sector current spending for 2002-03 was above planned totals, whilst capital spending was well below. An investigation is recommended into the reasons for the failure to adhere to investment programmes, as dramatic fluctuations in public sector investment militate against the efficient delivery of a sound public sector infrastructure.