THE Prime Minister’s priorities to grow the economy and reduce debt are in hand, says the Barrow MP, following the Budget announcement today.

Opening his Budget statement chancellor Jeremy Hunt said the UK economy was ‘proving the doubters wrong’ and with ‘stability and sound money’ Britain will avoid a technical recession this year.

Mr Hunt used his Budget to promise a major expansion of free childcare and he has already announced an extension of support for household energy costs.

The chancellor said the energy price guarantee, which caps average household bills at £2,500, will be extended at its current level from April to June.

It had been due to rise to £3,000 in April and the cost of scrapping the planned 20 per cent increase will amount to about £3 billion.

Opening his Budget statement, Mr Hunt told MPs: “In the face of enormous challenges, I report today on a British economy which is proving the doubters wrong.”

He added: “Today the Office for Budget Responsibility (OBR) forecast that because of changing international factors and the measures I take, the UK will not now enter a technical recession this year.

“They forecast we will meet the Prime Minister’s priorities to halve inflation, reduce debt and get the economy growing. We are following the plan and the plan is working.”

Simon Fell, MP for Barrow and Furness, has welcomed the Budget announcement.

He said: “This was a very solid budget, focussed on growth and unlocking the barriers to it. It was very welcome to see bold moves on childcare, extending free childcare to 30 hours a week for children between nine months and four years.

“This has come up time and again on the doorstep. Similarly, paying UC childcare costs up front and increasing the hourly rates to childcare providers will be transformational. Many families in Furness have been concerned by the increase in the cost of living - so it was good to see support for the £94 billion package continuing, including the energy price cap for the next three months. 

“The moves on energy security are also very welcome - the funding for Carbon Capture and Storage is exactly what Spirit Energy in Barrow need to get their scheme off the ground. Similarly, the launch of Great British Nuclear and the support for SMRs is great news for Cumbria and Sellafield. 

“Finally, the measures supporting business - increasing the supply of labour (including pension rules that disincentivise skilled people - especially doctors - from continuing in the profession), incentivising business investment are welcome.

“This was a budget about growth and it is clear that the PM's priorities for halving inflation, growing the economy and reducing debt are in hand.”

The Chancellor announced:

– that debt is forecast to be 92.4 per cent of GDP next year, 93.7 per cent in 2024-25; 94.6 per cent in 2025-26, and 94.8 per cent in 2026-27, before falling to 94.6 per cent in 2027-28.

– that the OBR forecasts inflation in the UK will fall from 10.7 per cent in the final quarter of last year to 2.9 per cent by the end of 2023.

– the fuel duty freeze and the 5p cut will be maintained for another year, saving the average driver around £100.

– a ‘Brexit pubs guarantee’ will see duty on draught products up to 11p lower than in supermarkets.

– the Government would add £11bn to the defence budget over the next five years.

– the Government will provide a more than £30 million package to increase the capacity of the Office for Veterans’ Affairs

– a £63 million fund to ‘keep our public leisure centres and pools afloat’ in response to high costs and £100 million will be given to support thousands of charities and community organisations.

– an extra £10 million to the third sector for suicide prevention.