Chancellor George Osborne has predicted better than expected economic growth as he unveiled a Budget which "rewards working families and helps those looking for work".
Mr Osborne said the Office for Budget Responsibility expects UK plc "to avoid a technical recession with positive growth in the first quarter" of this year.
He said the OBR had reported that the economy has "carried a little more momentum into the new year than previously anticipated".
He added: "Indeed, the Office for Budget Responsibility is slightly revising up in their growth forecast for the UK this year to 0.8%."
This is up from 0.7% last autumn.
The OBR is also predicting growth of 2% next year, 2.7% in 2014 and 3% in both 2015 and 2016.