Britain has hiked its economic growth forecasts as the recovery picks up speed and outstrips other advanced nations, finance minister George Osborne said today.
Osborne, delivering a key budget update, also vowed to pursue his deficit-slashing policy to secure the recovery, warning that Britons might have to work until 69 before claiming a state pension.
The economy will grow 1.4 per cent in 2013 and 2.4 per cent in 2014, Osborne said in his so-called autumn statement.
That marked hefty upgrades from previous expansion estimates of 0.6 per cent and 1.8 per cent, given in the annual budget in March.
"Growth over the forecast period is significantly up," Chancellor of the Exchequer Osborne told lawmakers.
"I can report that Britain is currently growing faster than any other major advanced economy. Faster than France, which is contracting. Faster than Germany, faster even than America."
The economy grew 0.8 per cent in the third quarter, the fastest rate for more than three years, thanks to a buoyant property market and rebounding consumer expenditure -- and despite state austerity.
"I can today report the hard evidence that shows our economic plan is working... The job is not yet done," Osborne noted.
"Yes, the deficit is down but it is still far too high and today we take more difficult decisions," he said, but added that the Conservative-Liberal Democrat coalition government would borrow less than expected this year.
The Conservative minister announced a new cap from next year on welfare spending, and outlined plans for another 3.0 billion pounds (USD 4.9 billion, 3.6 billion euros) in savings in the public sector.
Osborne said the state pension age is now forecast to rise to 69 in the late 2040s.
That compares with the previous plans to raise it from 65 to 68, and means that many Britons might have to work until the age of 70.
He also unveiled new measures to tackle tax avoidance, tax evasion, fraud and error, in a crackdown to raise more than 9.0 billion pounds over the next five years.
