Britain's economy has recovered the losses caused by the financial crisis and surpassed its pre-recession peak in the second quarter of the year, by posting a growth rate of 0.8%.
The International Monetary Fund has raised its forecast for Britain's GDP growth rate for the second time this year, heaping further embarrassment on the Washington-based organisation following its warning in 2013 that George Osborne's austerity policies were "playing with fire" and could trigger a slump.
Bank of England policymakers are growing increasingly uneasy about the UK's record low interest rates – but signalled on Wednesday that the first rise will not come until real wages start to recover.
The coalition government borrowed more than expected in June, putting chancellor George Osborne further off course in his plan to reduce the deficit.
Britain will pass another milestone in its economic recovery this week, with official figures showing it has clawed back all theoutput lost since the 2008 financial crisis.
British businesses are calling on the Bank of England not to rush into an interest rate rise, warning that the recovery is not yet secure as a closely watched report on Tuesday shows a slowdown in exports.
A Labour government will reform, rather than defend uncompetitive markets, but help industry to build a skilled labour force, Ed Miliband has said.
Britain's 10 million mortgage payers have been warned to ready themselves for dearer borrowing costs after a Bank of England policymaker said stronger-than-expected growth meant the era of ultra-cheap money was drawing to a close.
The Treasury insists the Bank of England's new powers to cap mortgages do not amount to an admission of error over introducing the Help to Buy scheme for first-time buyers.
Hope that Britain's economic recovery is broadening beyond consumer spending have been boosted by news that manufacturers enjoyed their strongest annual growth for more than three years in April.
Britain has slipped two places down Europe's league table of living standards falling to sixth after being overtaken by Austria and Germany, the European Union's statistical body said.
It says something about the enfeebled state of the British economy when the Treasury can take comfort from a forecast from the Organisation for Economic Co-operation and Development that growth will be just 0.9% next year.