The UK will not enter a "technical recession" this year, Jeremy Hunt told the Commons. Starting his spring Budget, he said the British economy is "proving the doubters wrong" in the face of "enormous challenges".
The Chancellor said: "We remain vigilant, and will not hesitate to take whatever steps are necessary for economic stability. Today the Office for Budget Responsibility forecast that because of changing international factors and the measures I take, the UK will not now enter a technical recession this year.
"They forecast we will meet the Prime Minister's priorities to halve inflation, reduce debt and get the economy growing. We are following the plan and the plan is working. But that's not all we've done."
Mr Hunt confirmed that the Energy Price Guarantee would remain in place until the end of June, three months longer than first announced. After that, he said, energy prices are predicted to fall below that level.
He said of the Office for Budget Responsibility: "They forecast we will meet the Prime Minister's priorities to halve inflation, reduce debt and get the economy growing. We are following the plan and the plan is working."
Mr Hunt highlighted cost-of-living support, adding: "Today, we deliver the next part of our plan. A Budget for growth. Not just the growth that comes when you emerge from a downturn, but long-term, sustainable, healthy growth that pays for our NHS and schools, finds jobs for young people, and provides a safety net for older people all whilst making our country one of the most prosperous in the world. Prosperity with a purpose."
The Office for Budget Responsibility forecasts inflation to fall from 10.7% last year to 2.9% by the end of the year, Jeremy Hunt said.
