UK's sluggish economy to grow a bit more quickly: Hammond

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As expected, there were no new tax and spending announcements, Mr Hammond explaining this would bring the UK's economic policy in line with other major countries.

If in the autumn the public finances continued to reflect the improvements outlined on Tuesday, he said the government would "have capacity to enable further increases in public spending and investment in the years ahead".

His speech is expected to indicate the United Kingdom has benefited from two years of austerity measures and will show things like the projected GDP growth and borrowing for the United Kingdom government in future years.

The government's slender majority meant Hammond had limited room for manoeuvre and scant political cover for any missteps, meaning he was always likely to make few changes despite calls from Labour and some Tories to ease nearly a decade of austerity.

In an address to lawmakers, Philip Hammond said the British economy is set to grow by 1.5 percent this year instead of the previous 1.4 percent forecast.

Britain's economy has slowed sharply since the vote in June 2016 to leave the European Union.

At the end of the speech, Labour's shadow chancellor John McDonnell will critique the economic performance of the government in the Commons.

Worryingly for Hammond, the OBR said the economy was already running slightly faster than it could do without generating excessive inflation, even as it lagged behind its historic growth rates.

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In the absence of tax and spending measures, Hammond will speak about economic forecasts put together by the OBR.

The Office for Budget Responsibility's forecasts for the deficit, debt, GDP and productivity will form the backbone of the statement.

While Hammond was arguably making more of the upgrade than it's worth, we could hardly have expected him to do anything different.

Britain has lowered its annual borrowing from 10 percent of gross domestic product in 2010, when it was reeling from the global financial crisis, to just over 2 percent now.

They want to check a rise in support for the Labour Party which has promised to end the Conservative squeeze on public-sector pay and invest more in infrastructure.

He confirmed that in 2018-2019 the Government's day-to-day spending will be in surplus, while the UK's debt mountain will peak at 85.6% of GDP this year and gradually fall to 77.9% by 2022-23.

The shortfall was also cut for the following years, although the government is still seen running a small deficit by 2022/23, the end of the OBR's forecast period.

He also said the debt forecast is coming down, and by the end of the Parliament will have fallen significantly, saying that there is now "light at the end of the tunnel".

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