The UK economy will avoid a recession in 2023 as inflation plunges from recent highs, Jeremy Hunt has told MPs in his Spring Budget. 

Delivering his second major fiscal statement as Chancellor, he said: "In the fact of enormous challenges I report today on a British economy which is proving the doubters wrong."

Mr Hunt said the Office for Budget Responsibility now predicts the UK will avoid a technical recession - two straight quarters of falling GDP - and that inflation will more than halve by the end of this year.

He also gave families support with their energy bills and childcare. 

Ahead of the Spring Budget, Mr Hunt was urged to cut taxes by Conservative MPs and industry lobby groups after inflation and borrowing data suggested he had more room for manoeuvre than feared.

Here is a live summary of what the Chancellor said:

The UK economy

Announcing the latest predictions by the OBR, Mr Hunt said improving global conditions and actions taken by ministers after Liz Truss's disastrous mini-Budget meant the UK is now expected to avoid an economic recession.

Record inflation is also expected to come down.

Mr Hunt said the OBR now forecasts it will fall from 10.7pc at the end of 2022 to 2.9pc by the end of 2023.

This means the Government will meet Rishi Sunak's target for reducing inflation, he said. 

Energy bills support

The Government’s Energy Price Guarantee, which subsidies household energy costs above a certain threshold, was previously scheduled to become less generous from April 1. 

This would have seen the amount that a typical household pays per year rise from £2,500 to £3,000.

But Mr Hunt confirmed that support will now continue at the same level. It will save the average family £160 on their energy bills and cost the Treasury around £3bn.

He also confirmed that the so-called "prepayment premium" - where customers who use energy prepayment metres pay more than those on direct debit - would be scrapped from July. 

The move is expected to save about four million households £45 a year.

Fuel duty 

As trailed in advance, a planned rise in fuel duty this April has been delayed again.

Hiking the levy in line with RPI inflation would have added 7p to the price of a litre of fuel, while a temporary 5p fuel duty cut was also due to expire.

The two factors combined meant the cost of fuel duty was on course to rise by 23pc – an extra 12p per litre.

However, Mr Hunt confirmed that the temporary cut would be extended by 12 months and the inflationary rise held back again. 

These two measures combined would cost the Treasury £6bn, Deutsche Bank has predicted.