Next week, the Chancellor will reveal the Government’s latest set of tax and spending policies as she also outlines her ambitions for the economy under the Labour Government.

The state of the economy is the key focal point ahead of the Budget, amid criticism from industry over the impact of the Government’s first Budget last year.

The state’s official forecaster will also lay out its key projections over how the economy is set to fare over the coming years, with fears that it could present a gloomy outlook in the short term.

Here the PA news agency looks at the importance of this Budget for the economy:

– What is the backdrop of the Budget?

The UK economy started the year with positive growth, with GDP (gross domestic product) rising by around 0.7% over the first quarter of the year.

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