Chancellor Jeremy Hunt said:

In the face of severe global challenges, the UK economy has proved more resilient than many expected, but there is a long way to go.

Next week, I will set out the next stage of our plan to halve inflation, reduce debt and grow the economy - so we can improve living standards for everyone.

Although the economy grew slightly to begin the year, looking at the broader picture, GDP was flat in the three months to January.

Services expanded but manufacturing and construction were a drag on growth:

The year got off to a positive start as the economy grew by 0.3pc in January, according to the Office for National Statistics..

The expansion in gross domestic product (GDP) comes after Britain narrowly avoided a recession at the end of last year.

5 things to start your day 

1) Hunt forecast to have £166bn of headroom for Budget tax cuts | Chancellor comes under renewed pressure to pivot on corporation tax rise

2) I struggle to find men to work for me, says John Lewis chief | Dame Sharon White says she has been criticised for trying to 'rebalance' the 'strong male culture' at the retailer

3) Brexit freedoms make UK a magnet for highly-skilled migrants, says OECD | Abolishing red tape after leaving the EU is helping Britain lure more global talent

4) Credit Suisse shares hit record low after accounts questioned by US regulator | Struggling Swiss bank delays annual report after conversation with Securities and Exchange Commission

5) Inside Joe Biden’s plan for a tax raid on billionaires | The US President wants higher taxes – but he faces a battle to get them past Republicans

What happened overnight 

Falling bank stocks caused Asian markets to drop after a surprise capital raising at a Silicon Valley start-up lender unleashed fears of broader banking-system stress.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.7pc to a two-month low, with banks and Hong Kong tech stocks leading losses. Australia's benchmark index S&P/ASX200 lost 2.3pc.

Japan's shares ended lower, snapping a five-day winning streak, after the Bank of Japan left its ultra-easy monetary policy unchanged at Governor Haruhiko Kuroda's last meeting.

The benchmark Nikkei 225 index dropped 1.7pc to close at 28,143.97, while the broader Topix index lost 1.9pc to 2,031.58. 

The US dollar edged higher and short-end Treasuries extended sharp overnight gains - driving two-year yields down another 12 basis points to 4.7837pc in Tokyo trading.

The sharp moves followed SVB Financial Group, parent of start-up-lender Silicon Valley Bank, noting a higher-than-expected "cash burn" from clients, falling deposits and rising costs of capital. It announced an equity sale hours after crypto-focused lender Silvergate said it was closing down.

Early trading gains on Wall Street were sharply reversed by the end of the day. The Dow Jones Industrial Average closed 1.7pc lower to 32,254.86.

The broad-based S&P 500 fell 1.9pc to 3,918.32 while the tech-rich Nasdaq Composite sunk 2.1pc to 11,338.36.