This is my tenth Pre Budget Report and under this government the tenth consecutive year of growth.

I can report not only the longest period of sustained growth in our history, but of all the major economies - America, France, Germany, Japan - Britain has enjoyed the longest post war period of continuous growth.

And the Treasury forecast is that growth - sustained under this government for a record 38 quarters - will continue into its 39th and 40th quarter and beyond.

Ten years ago Britain was 7th in the G7, bottom of the league for national income per head. In the last two years Britain has been second only to the USA.

In no other decade has Britain's personal wealth - up 60 per cent - grown so fast.

And this Pre Budget Report drives forward the great economic mission of our time - to meet the global challenge, to unleash the potential of all British people, so that the British economy outperforms our competitors - and deliver security, prosperity, and fairness for all.

Let me report: growth in quarter one of 0.7 per cent, quarter two 0.7,
quarter three 0.7.

The forecast for 2006 was annual growth of between two per cent and two and half per cent.

I can report that growth this year will surpass this figure and is expected to be two and three quarters per cent, and rise to two and three quarters per cent to three and a quarter per cent next year.

Business investment is up five and three quarters per cent, exports are up 6 per cent, and investment overall is up 6 per cent.

Despite contending with global imbalances, exchange rate uncertainties, stalled trade talks and high commodity prices, Britain's investment led, export led growth is forecast to continue in 2007, investment and exports both to rise by five per cent or more.

And by mid 2007 we expect inflation to be at its 2 per cent target and remain at target in 2008.

Uniquely Britain continues to combine recession free growth with the longest period - a decade - of simultaneous employment and productivity growth.

Productivity, which in the last economic cycle up to 1997 grew by 1.9 per cent is averaging since 1997 2.4 per cent - and from 1997 to, and including, this year our productivity per worker has moved 3 per cent ahead of Germany, 11 per cent ahead of Japan and we have halved the gap with France.

And as productivity continues to rise - Britain the only G7 country to narrow the gap with the USA this year alone there are 200,000 more people in employment, now 2 and a half million more jobs than in 1997,
the highest ever number of men and women in work in our country,
and employment higher since 1997 in every region and nation.

Explore Economics

• Pre-Budget Report 2009

• Budget 2009

• World Economic Forum

• The Times MPC

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive