Britain will not enter a “technical recession” this year, Jeremy Hunt has told the Commons.
Chancellor Jeremy Hunt said the British economy was “proving the doubters wrong” against “enormous odds” as he set the budget.
He said the UK economy was “on the right track”.
The chancellor said: “We are vigilant and will not hesitate to take any step necessary for economic stability. Today, the Office for Budget Responsibility predicts that the UK will not enter a technical recession this year due to changing international factors and the measures I have taken.
“They expect us to deliver on the prime minister’s priorities of halving inflation, reducing debt and growing the economy. We are following the plan and the plan is working. But that’s not all we do.”
The chancellor summarized his plans to ensure the growth of the UK economy.
Mr Hunt said: “I will deliver this by removing the barriers that stop businesses from investing today; by eliminating labor shortages that prevent them from being hired; by breaking down barriers that stop people from working; and by harnessing British ingenuity to make us a science and technology superpower.”
The Office for Budget Responsibility expects inflation to fall to 2.9 percent by the end of the year from 10.7 percent last year, Jeremy Hunt said.
Part of the fall in inflation will depend on the measures he is taking today, the chancellor said.
He said £94 billion was spent on providing energy to households, with more than £3,300 in cost-of-living assistance for every household in the country.
Now it’s a “budget for growth,” says the Chancellor.
Mr Hunt also said this could not be done while the UK was in the EU, which he said would “significantly increase the generosity of the bailout”.
He told MPs: “From August 1, duty on pub products will be 11 times lower than supermarket duty, a differential we will retain as part of the new Brexit pub guarantee. British ale may be warm, but duty on the pint is frozen.”
Mr Hunt said the change would apply to “every pub in Northern Ireland” because of the Windsor structure.
Fuel Duty Jeremy Hunt said: “Inflation remains high and I have decided now is not the right time to raise fuel duty by inflation or to increase duty.
“Here’s what I’m going to do: for another 12 months I’m going to keep the 5p cut and I’m also going to stop fuel tax. This will save the average driver around £100 and around £200 next year since the 5p cut was introduced.”