BUDGET 2006: Economic outlook positive for UK going forward

The chancellor said he had entrenched a "culture of stability", with inflation expected to be in line with the government's target in five or 10 years time. He said even with economic crises around the world, Britain's economy had proved "resilient, robust and prudent". He promised "no return to boom and bust" and predicted that public pay would on average rise 2.25% in the next year, while economic growth would rise to 2.75% to 3.25% for 2007/08.