The Chancellor has warned of a “dangerous cocktail of risks” facing the world economy.

But he instated that the UK was in a better position than most other countries to deal with adverse headwinds coming this way.

He acknowledged stock market volatility, weak growth globally, and in particular in China, were causes for concern.

However, he stressed there were positives to the economic picture in Britain.

He said: “Today I report on an economy set to grow faster than any other major advanced economy in the world.

“When I became Chancellor we borrowed £1 in every £4 we spent. Next year it will be £1 in every £14

“The OBR tell us today that in every year of the forecast our economy grows and so too does our productivity.

“The OBR forecast it [UK GDP] will grow by 2% this year, then 2.2% again in 2017, and then 2.1% in each of the three years after that.

“In these turbulent times the latest international forecasts expect Britain to grow faster than any other advanced economy in the world."

Forecasts are predicated on the UK staying in the EU, he said.

He said while the OBR was politically neutral, he quoted its analysis of the EU referendum and possible consequences, which said: “A vote to leave could usher in an extended period of uncertainty regarding the precise terms of the UK’s future relationship with the EU.”

He said the OBR has revised down growth in the world economy and in world trade.

Latest data shows the ‘drag’ from the 2008 financial crisis has not receded entirely, he said.

But while Britain had been worst prepared for crisis out of the leading economies when the crash came eight years ago, it’s now the best prepared for any forthcoming recurrence, he claimed.

#Budget2016 @FPTodayNews Chancellor says UK productivity growth revised down by OBR since his Nov forecast

— Kevin O'Donnell (@FPT_Kevin) March 16, 2016

He added that the labour market is delivering the highest employment levels in our history and the UK was on course for a Budget surplus.

He said the UK economy was stronger because it confronted the problems and took difficult decisions and pursued a long term economic plan when his party came to Government in 2010.

Although he spoke of a “dangerous cocktail of risks” globally, he said the UK is “well placed o handle if we act now”.

He said: “Britain is not immune to slowdowns and shocks but neither are we powerless.”

It will be a ‘stability first Budget’ he said, adding “we choose to put the next generation first” as well as “sound finances”.

 

Chancellor defends economic record in face of noisy MPs #Budget2016 @FPTodayNews

— Kevin O'Donnell (@FPT_Kevin) March 16, 2016