Updated 3:55am 29 March 2012

Budget 2012: George Osborne predicts rising growth

George Osborne pictured on Downing Street ahead of delivering his 2012 Budget
George Osborne pictured on Downing Street ahead of delivering his 2012 Budget

Chancellor George Osborne has predicted better than expected economic growth as he unveiled a Budget which "rewards working families and helps those looking for work".

Mr Osborne said the Office for Budget Responsibility expects UK plc "to avoid a technical recession with positive growth in the first quarter" of this year.

He said the OBR had reported that the economy has "carried a little more momentum into the new year than previously anticipated".

He added: "Indeed, the Office for Budget Responsibility is slightly revising up in their growth forecast for the UK this year to 0.8%."

This is up from 0.7% last autumn.

The OBR is also predicting growth of 2% next year, 2.7% in 2014 and 3% in both 2015 and 2016.

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