U.K. Budget Gap to Be Double Darling's Prediction

Britain's budget deficit will be almost twice as much as Chancellor of the Exchequer Alistair Darling predicts because of slower economic growth, the National Institute of Economic and Social Research said.

Lower tax receipts and rising spending will boost the Treasury deficit to 14.7 billion pounds ($30 billion), NIESR predicted, above Darling's estimate of 8.3 billion pounds. NIESR expects the economy to expand 2.2 percent, less than the 2.6 percent rate it expected in July.

``The Treasury is being far too optimistic,'' Martin Weale, director of the London-based academic research organization that advises the Bank of England and the Treasury, said at a briefing with reporters. ``Things are appreciably worse.''

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