The UK economy will avoid a recession in 2023 as inflation plunges from recent highs, Jeremy Hunt has told MPs in his Spring Budget.

Delivering his second major fiscal statement as Chancellor, he said: "In the face of enormous challenges I report today on a British economy which is proving the doubters wrong."

Mr Hunt said the Office for Budget Responsibility now predicts the UK will avoid a technical recession – two straight quarters of falling GDP – and that inflation will more than halve by the end of this year.

And in a boost to millions of households, he announced the following measures:

Further support with energy bills
Expanded free childcare for children aged nine months to four
The abolition of the pension lifetime allowance
Ahead of the Spring Budget, Mr Hunt was urged to cut taxes by Conservative MPs and industry lobby groups after inflation and borrowing data suggested he had more room for manoeuvre than feared.

#politics #budget #jeremyhunt

Subscribe to The Telegraph with our special offer: just £1 for 3 months. Start your free trial now:
https://www.telegraph.co.uk/customer/subscribe/digitalsub/3for1/?WT.mc_id=tmgoff_pvid_conversion-subscription_editorial-iniative_03-22_EGW-13_organic_youtube

Get the latest headlines: https://www.telegraph.co.uk/

Telegraph.co.uk and YouTube.com/TelegraphTV are websites of The Telegraph, the UK's best-selling quality daily newspaper providing news and analysis on UK and world events, business, sport, lifestyle and culture.