Chancellor George Osborne MP has confirmed today that the Office for Budget Responsibility (OBR) is predicting the British economy will avoid a ‘technical recession’.
In his 2012 Budget, the Chancellor said the British economy has carried a little more momentum into the New Year than previously expected.
He explained: “The Office for Budget Responsibility is revising up its [growth] forecast for this year to 0.8 per cent, 2 per cent next year, 2.7 per cent in 2014 and 3 per cent in 2015 and 2016.”
Osborne said that unemployment is likely to peak at 8.7 per cent this year before falling to 6.3 per cent at the end of the OBR’s forecast period.
Inflation is expected to fall throughout the period.
In his opening remarks in this year’s Budget, Osborne added: “This budget supports working families and helps those looking for work.
“It unashamedly backs business and is on the side of aspiration. Because we have already taken difficult decisions, this can be a reforming budget.
“This is how Britain will earn its way in the world with a simpler tax system where ordinary tax payers understand what they are being asked to pay; a tax system where millions of the lowest paid are lifted out of tax altogether while the tax revenues we get from the wealthiest will increase.
“Reforming tax is only part of the story. We will say to all business we will provide you with a modern infrastructure. British business will have the confidence to invest, expand and innovate.”