British Chancellor Gordon Brown has declared that Britain had not had it so good for 200 years.
Delivering his eighth Budget statement to the Commons, he said this years measures would "lock in for Great Britain an economic stability that can and will endure".
He said that the country had its longest period of sustained economic growth for more than 200 years - since the beginning of the industrial revolution.
The economy was on course to meet his forecast of growth of 3 to 3.5 per cent this year and next, easing back to 2.5 per cent to 3 per cent the year after, he told MPs.
He said the country was ready to capitalise on the global economic recovery by boosting investment in education, science and enterprise.
The Chancellor said the Treasury would not revisit the five economic tests for joining the euro this year, but he left open the option of a referendum before the next General Election.
To loud Labour cheers, Mr Brown told the Commons: "I can now report that Britain is enjoying its longest period of sustained economic growth for more than 200 years - the longest period of sustained growth since the beginning of the industrial revolution."
Mr Brown said it was time to "combine a new confidence about Britain's economic potential with a new resolve to make the right long-term choices in education, science and enterprise".
He said that the UK, despite Tory claims that he had been incautious, had met his forecasts for growth which was 2.3 per cent last year.
The Chancellor said that Britain had now out-performed Germany, Japan, Italy, France, the Euro area and the US on growth in the last four years.
- Economy grew in 2003 by 2.3 per cent, with average growth over four years of 2.5 per cent
- Mortgage rates lowest for 40 years
- Domestic demand to grow 3.5 per cent this year
- Manufacturing to grow by 2 per cent this year and next year
- Inflation forecast to be 1.75 per cent this year and 2 per cent next year
- In 2005, economy expected to grow by 3- 3.5 per cent, and in 2006, by 2.5 -3 per cent
- No euro assessment at the time of this Budget, but it will be reviewed again in next year's Budget
- Must deliver more affordable housing, he added
- Debt this year is 33 per cent of national income
- Borrowing forecast is 3.4 per cent of GDP this year
- Borrowing this year to hit £37.5 billion, falling to £23 billion by 2009
- Extra £6 billion allocated to fight terrorism
- Corporation, capital gains tax, betting duty, stamp duty, inheritance tax and rates frozen
- £1 billion extra allocated for local council services.
- £5 billion raised from sale of public land.
- Delaying fuel duty to September 1st. Diesel, including red diesel, fuel oil and LPG, up 2.4p a litre, low sulphur fuel up 1.9p a litre, sulphur-free fuel up 1.4p. Lower duty rises for cleaner fuels
- Beer up 1p a pint, wine up 4p a bottle, duties frozen on cider, sparkling wines and spirits
- Cigarettes up 8p for 20
- International aid development to be increased
- Education budget to rise by £8.1 billion by 2008
- NHS to get 10 per cent cash rise every year until 2008
PA