The Budget sets out a a plan for a “brighter future” as the UK leaves the European Union, the Chancellor has told MPs.
Delivering his first Budget, Philip Hammond said the UK economy had “continued to confound the commentators” by delivering “robust growth”.
With Prime Minister Theresa May expected to start the formal Brexit process within weeks, Mr Hammond told the Commons: “As we start our negotiations to exit the European Union, this Budget takes forward our plan to prepare Britain for a brighter future; it provides a strong and stable platform for those negotiations.”
He added: “We are building the foundations of a stronger, fairer, more global Britain.”
Mr Hammond was given a boost as the Office for Budget Responsibility sharply upgraded growth forecasts for 2017 from 1.4% to 2%.
In 2018 growth is forecast to slow to 1.6%, before picking up to 1.7%, then 1.9%, and back to 2% in 2021, the Chancellor said.
Mr Hammond acknowledged there was “no room for complacency” despite the buoyant growth figures and improved forecasts for the public finances.
The OBR forecasts borrowing in 2016-17 to be £16.4 billion lower than expected in November, at £51.7 billion. By 2021-22 the deficit is forecast to have shrunk to £16.8 billion.
The Chancellor said: “As we prepare for our future outside the EU we cannot rest on our past achievements.
“We must focus relentlessly on keeping Britain at the cutting edge of the global economy. The deficit is down, but debt is still too high. Employment is up, but productivity remains stubbornly low.
“Too many of our young people are leaving formal education without the skills they need for today’s labour market. And too many families are still feeling the squeeze, almost a decade after the crash.”
