Jeremy Hunt has said official forecasts show the UK will swerve a "technical recession" in 2023 as he unveiled the Budget.
The Chancellor revealed forecasts from the Office for Budget Responsibility (OBR) also predicting inflation will fall to 2.9% by the end of the year.
In the final quarter of 2022 inflation stood at a staggering 10.7% in the wake of the disastrous mini-Budget and failed PM Liz Truss's 49-day stint in No10.
Addressing MPs, Mr Hunt said the OBR forecasts show that due to "changing international factors and the measures I take, the UK will not now enter a technical recession this year".
Billed as the "back to work" Budget - attempting to get people back into the workforce - the Chancellor also unveiled a significant expansion of childcare.
Unveiling his rabbit from the hat, Mr Hunt announced £4billion of funding for free childcare for all under-5s in England - but it won't be rolled out in full until 2025.
Just hours before the Chancellor stood up in the Commons the Treasury announced it would delay a £500 rise in already sky-high energy bills.
The Energy Price Guarantee was due to rise from its current level of £2,500-a-year for a typical household to £3,000 in April - despite the ongoing cost-of-living crisis.
But the Government announced the hike would be cancelled amid intense political pressure and warnings it would push 1.7million more people into fuel poverty.
Mr Hunt also told MPs he would end the prepayment "premium" - a system whereby those on pay-as-you-go meters are charged more than direct debit customers.
The Treasury estimates the policy will cost around £200million - but will save households using pre-payment meters around £45 a year.
But all consumers will still face having to find an extra £67 a month when the Government withdraws the Energy Bill Support Scheme next month.
The Budget on Wednesday comes six months after the economic chaos inflicted on the country from PM Truss's disastrous mini-Budget.
Her unfunded tax cuts for the richest Brits caused turmoil in the financial markets before she was forced to rip up her plans and sack then-Chancellor Kwasi Kwarteng.
