Chancellor Gordon Brown claimed the UK has experienced the longest period of economic growth since records began in 1701 during his budget announcement.
He said inflation is now 1.6 per cent and is expected to be 1.75 per cent this year and 2 per cent in 2006 and beyond
Growth for 2004 was 3.1 per cent, as forecast, and Brown predicted the economy will grow by 3 per cent to 3.5 per cent this year and 2.5 per cent to 3 per cent next year. Inflation iss the lowest for 30 years, interest rates the lowest for 35 years and employment the highest ever, said Mr Brown
Borrowing was forecast at £34bn for 2004/5, £32bn for 2005/6 and £29bn for 2006/7.
The Chancellor’s budget announcement has been welcomed by the retail sector.
Kevin Hawkins, director general of the British Retail Consortium said: “We welcome the Chancellor's recognition that both low inflation and low interest rates are the key to stability in the UK economy and retailers are relieved that Gordon Brown has done nothing to further weaken consumer confidence. His actions may even have a positive impact on confidence.”
The budget was also welcomed by the National Farmers' Union, which said it was pleased with the commitment to lessen the burden of regulation on business and hoped the streamlining of agricultural inspection bodies will reduce the level of red tape being inflicted on the industry.
However, it said the true test of this move will come in the field and it looked forward to seeing how the new structure will operate.
The NFU believed the agricultural industry is well placed for the adoption of the risk based inspection system highlighted in the Chancellor's speech.
A spokesman said: "The announcement that there will be five inspection bodies (covering: food safety, the countryside, agriculture, animal health and environmental protection) in place of the current twenty-two should be positive as long as it does lead to reduced regulation and red tape.
"The NFU believes that this process needs to be thoroughly thought through and the new agencies area a logical fit. This can be achieved through consultation with stakeholders and should not be a numbers game to reduce headline public figures."
It also welcomed the decision to delay increases in fuel duty until September 2005.
"However, the increase in the taxation on red diesel will add significant costs to the agriculture sector," the spokesman said.
"As the NFU pointed out ahead of the budget in a letter to the Chancellor, increases in the duty on red diesel do little to deter fuel fraud and unjustly penalise legitimate users."