Britain’s economy is set to expand faster than previously predicted. <br /><br />The government’s Office for Budget Responsibility is forecasting growth of 2.7 percent this year. The Bank of England’s prediction is even rosier at 3.4 percent. <br /><br />That meant finance minister George Osborne was able to crow of a solid recovery as he presented his annual budget plans. <br /><br />The Chancellor of the Exchequer, as he is official known, told lawmakers in parliament: “We are now growing faster than Germany, faster than Japan, faster than the United States; in fact there is no major advanced economy in the world growing faster than Britain today.”<br /><br />Despite that Osborne warned Britain’s public finances remain far from healthy, so he will continue cutting government spending.<br /><br />In more good news for the government, Britain’s jobless rate held stable at 7.2 percent of the workforce in the three months to January.<br /><br />Average earnings picked up, but not as much as inflation making living standards a key battleground for next year’s elections.<br /><br />Britain goes to the polls in May 2015 and the annual budget plan is one of the government’s last opportunities to make a difference to how people feel about their finances before then.<br /><br />With an eye to voters Osborne promised help for savers, tax breaks for manufacturers and lower taxes on beer and bingo.<br /><br />His help to savers – who have been hurt by near-zero interest rates – included an easing of requirements on pensioners to buy annuities.<br /><br />Government savings accounts which will pay above-market interest rates to people aged over 65 have also been created. <br /><br />Shares in insurance firms fell on the announcement.<br /><br />Shares in gambling firms also weakened on news of a new tax for the industry, even as Osborne cut a levy on bingo.<br /><br />The Labour opposition said the budget failed to help ordinary people.<br /><br />Labour leader Ed Miliband said: “Today the chancellor (Osborne) simply reminded people of the gap between his rhetoric and the reality of peoples’ lives – living standards falling for 44 out of 45 months under this prime minister, unmatched since records began. No amount of smoke and mirrors can hide it.”
