Official forecasts for UK economic growth have been raised for the next two years but cut for later years.
The predictions from the Office for Budget Responsibility (OBR) show that gross domestic product (GDP) is expected to rise by 2.7% in 2014, up from a forecast of 2.4% in December.
The growth forecast for 2015 has been raised from 2.2% to 2.3% and 2016 has been left unchanged at 2.6%.
The 2017 rate fell from 2.7% to 2.6%. The 2018 rate fell from 2.7% to 2.5%.
Chancellor George Osborne announced the forecasts in the Budget speech, in which he said the economy was, "continuing to recover and recovering faster than forecast".
“As a result of our plan more people in work” he added and “we have a higher employment rate than the US”
Deficit forecast to be 6.6% of GDP this year, 5.5% in 2014-15 then falling to 0.8% by 2017-18 with a surplus of 0.2% in 2018-19. Borrowing forecast to be £108bn this year and £95bn next year, leading to a surplus of almost £5bn in 2018-19.
Key Business Points from the Budget 2014
Business rate discounts and enhanced capital allowances in enterprise zones extended for three years.
Threshold for 40p income tax to rise from £41,450 to £41,865 next month and by a further 1% to £42,285 next year.