Chancellor George Osborne of the UK will have more room for tax cut giveaways in the country as the economy continues to show strong recovery.

The Office for Budget Responsibility (OBR) is expected to announce that the government is ahead of its forecasts on cutting the deficit, which might allow the Chancellor to have more score for rate alterations.  The improving British economy might allow him to allow some tax incentives in the country.  The OBR has said that it is likely to increase its economic growth forecast for 2013 from 0.6 per cent to 1.4 per cent.

The UK's borrowing is expected to be around £105 billion, which is much below the £120 billion forecast for the nine months by the OBR.  This indicates that the chancellor could cut taxes to the tune of several billion pounds and still meet its targets.

The Institute of Directors and Taxpayers' Alliance are asking the government to freeze business rates as the economy records strong recovery.  Osborne might also address differences with foreign businesses with a new tax relief on spending on buildings that are sued for business purposes.