CHANCELLOR Philip Hammond revealed the economy is expected to grow more strongly than expected in his first revamped Spring Statement.

Mr Hammond said he was “positively Tigger-like” as he announced upgraded forecasts for growth and borrowing, though many economists are not so upbeat.

As promised, the Chancellor resisted the temptation to tinker with tax, savings or pensions.

However, he announced a number of consultations and calls for evidence designed to focus on how the tax system can be improved and how it can contribute to greening the economy, for example by tackling the problem of plastic waste.

Other papers published deal with such topics as taxing the digital economy, exploring ways of encouraging innovation, promoting training and investment in human capital.

However, his main focus was on the economy.

Guy Foster, head of research at Brewin Dolphin, says: “The Chancellor passed on a set of mostly harmless fiscal reports and announced the Government would listen to views on a range of topics.

"With no new announcements, the economy remains in a stable condition.

"Growth estimates were revised higher but remain very low by historical standards.

“What’s more, growth is a poor proxy for standards of living.

"Much of the UK’s post-financial-crisis growth took place at a time of fast population growth, resulting in GDP per person growing far slower.

“The Office for Budget Responsibility (OBR) agreed with the Bank of England that real wages ought to turn positive next quarter, but this has more to do with a fall in inflation than an acceleration in wage growth.

“As the Chancellor said, these forecasts are there to be beaten and whether that happens depends upon whether productivity picks up.

"However, as the Government is busy trying to manage Brexit and balance the budgets, the Chancellor didn’t unveil many productivity enhancing initiatives.

“Instead he is consulting with business over the fair collection of taxes on digital businesses and the increasing use of digital payments.

"This reflects his perception that markets, rather than politicians, create productivity.

“It would only take small tweaks to assumptions to transform the economic picture for the UK, although those tweaks could be negative or positive.

"The Government has a big job on its hands managing Brexit.

"It sounds increasingly as if much will still be unresolved in that process by the Budget in Autumn.

"Perhaps that’s why the Chancellor wears his frugality as a badge of honour.”

The key points

l The OBR has increased its GDP growth forecast for 2018 to 1.5 per cent from 1.4 per cent. Forecast growth is then unchanged at 1.3 per cent in 2019 and 2020, before picking up to 1.4 per cent in 2021 and 1.5 per cent in 2022.

l Inflation, which is currently above target at three per cent, is expected to fall back to target over the next 12 months.

l Borrowing is now forecast to be £45.2bn this year, £4.7bn lower than forecast in November.

l The more favourable outlook for borrowing means the debt forecast is nearly one per cent lower than in November. Peaking at 85.6 per cent of GDP in 2017/2018, it is expected to fall to 85.5 per cent in 2018-19, then 85.1 per cent, 82.1 per cent, 78.3 per cent, and finally 77.9 per cent in 2022/2023.