George Osborne has hailed the biggest upward revision to growth between Budgets for at least 30 years, but despite a “resilient” economy warned growth will slow in 2015 and 2016.
Delivering his penultimate Budget before the May election next year, the Chancellor said Britain's economy was continuing to recover, and faster than forecast.
Osborne told the House of Commons: “We set out our plan. And together with the British people, we held our nerve. We’re putting Britain right. But the job is far from done.
“Our country still borrows too much. We still don’t invest enough, export enough or save enough. So today we do more to put that right.”
Because the economy is growing quicker than expected, the Office for Budget Responsibility (OBR) has revised its forecasts. The economy will now grow 2.7% this year, 2.3% in 2015, 2.6% in 2016 and 2017, to 2.5% in 2018.
The OBR also now expects the economy later this year to be larger than it was before the recession.
To help boost manufacturing and exports, Osborne said he would...