WE'RE ON THE UP! SO LOOSEN THE PURSE STRINGS, MR HUNT

JEREMY Hunt has been urged to be bolder in going for growth so he can take advantage of improved economic forecasts.

-  Harvey Jones

Leading experts told the Daily Express the Chancellor may have enough headroom to knock £20billion off the collective tax bill and should take further measures to boost the country. Official figures released yesterday revealed that inflation defied predictions of a rise in January.

It unexpectedly held firm at 4% below the 4.2% forecast by some financial commentators.

Food costs dropped for the first time in two and a half years with the prices of bread, cereals, cream crackers and chocolate biscuits all coming in lower.

Meanwhile Andrew Bailey, the Governor of the Bank of England, also told peers yesterday the UK's economy is beginning to improve.

Crucial gross domestic product figures due to be released today were expected to show that the country tipped into a technical recession at the end of last year.