This is a Budget for business and exports, said the chancellor, adding that ‘manufacturing is growing but it halved under the last government’. He also hinted that this would be a budget for savers.

 ‘The economy is recovering faster than expected, together with the British people we held our nerve,’ said Osborne. ‘This is a Budget for building a resilient economy. It is all part of a long-term economic plan.

‘The deficit is down by a third; in the coming year it will be down by a half but it is still one of the highest in Europe. Investment and exports are up but we have 20 years of investment to catch up.’

However, the deficit is still almost double what Osborne predicted in 2010.

The forecasts from the Office for Budget Responsibility are higher than expected showing that growth next year is revised up to 2.3%, and to 2.6% in 2016 and 2017, before growth returns to the long-term trend in 2018. ‘The economy will be £16bn larger than forecast four months ago as result,’ says Osborne.

‘The pace of net job creation has been faster than any other government in a recession. The OBR now forecasts 1.5m jobs over the next five years. We have a record number in work and for the first time in 35 years a higher employment rate than the United States of America.’

The government has also committed to continuing the programme of austerity and will not 'squander the gains. They were hard won by the British people.

'In this Budget all decisions are paid for. Taxes are going lower, but so too is spending as we must bring our national debt down.'

Further departmental cuts are hinted at while the NHS, education and overseas aid will remain ringfenced.