WE'LL MAKE THIS WORK FOR BRITAIN

'I report today on an economy that is proving doubters wrong

- Sam Lister

RESOLUTE Chancellor Jeremy Hunt promised a brighter future for Britain after seeing off recession - declaring in his debut Budget that the stronger-than-expected economy is "proving the doubters wrong".

Resisting demands from within his own party for tax cuts, he insisted that the Government's plan is "working" as he laid out an array of initiatives to put the UK back on the "right track".

Mr Hunt, who later visited a nursery in south London, vowed to boost growth by encouraging mothers back into work with free childcare and unveiled pension reforms aimed at retaining top doctors plus tax breaks for businesses.

He outlined his plan for economic recovery, with inflation expected to more than halve while growth is tipped to hover around two per cent in the coming years.

There are still major hurdles looming: forecasters warn living standards face the biggest squeeze on record while the tax burden reaches another historic high. Mr Hunt said international experts believe the UK economy is on the right track but he insisted the Government will "take whatever steps are necessary" for stability.

He declared to MPs in the Commons yesterday: "In the face of enormous challenges I report today on a British economy which is proving the doubters wrong."

The Chancellor said government priorities to halve inflation, to reduce debt and to get the economy growing will all be met: "The declinists are wrong, and the optimists are right. We stick to the plan because the plan is working." 

Mr Hunt was later in confident mood as he told reporters that he was going to tell Tory MPs at the backbenchers' 1922 Committee "about the way this is going to help them win an election there is no path for us without a reputation for economic competence".