Chancellor George Osborne predicted better than expected economic growth today 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 0.8pc.'

This is up from 0.7pc last autumn.

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