David Cameron says his economic plan is "on track" despite a Bank of England admission that interest rates could rise sooner than expected.
Today's growth forecast may seem to be good news for the Coalition, but the increasing cost of living could cause problems at the polls.
Most borrowers are not economists. Deciding whether they can afford to borrow has just become more difficult.
The Unite union, which represents many Barclays workers, says the bank's decision to cut up to 1,700 jobs is 'a colossal mistake'.
The union said frontline roles, including cashiers, personal bankers, operational specialists, branch managers and assistant managers will go throughout 2014.
It claimed that customer service would be affected by the changes and said Barclays risked damaging its reputation.
In a statement Barclays said fewer of its customers were using branches.
Barclays bank says changes in the way customers use its branches is behind the decision to cut up to 1,700 jobs.
In a statement it said that new technology meant that fewer everyday transactions were now done in high street branches.
The bank said it would provide a better service with less staff.
It has started a voluntary redundancy scheme.
– Barclays statement
The way in which our customers access their banking services is changing rapidly.
More and more people are choosing to use smartphones and technology for everyday transactions - using branches only when they need access to expertise.
As a result of technological changes, we will be able to provide better service for our customers with fewer staff in our branches.
Barclays is to axe 1,700 jobs from across its branch network, according to the Unite union.
The British public is split over whether a rise in interest rates would have an impact on their personal financial situation.
Of those questioned for the latest ITV News Index carried out by ComRes, 30% felt it would have a positive impact, compared to 31% who said it would be negative:
- Very positive -7%
- Fairly positive - 23%
- No impact - 27%
- Fairly negative - 20%
- Very negative - 11%
- Don't know - 12%
Two-thirds of the British public expect interest rates to rise by 2015, according to the latest ITV News Index carried out by ComRes.
Of the 2,053 adults surveyed:
- 4% thought interest rates would rise by the end of the year
- 37% said it will happen in 2014
- 25% opted for 2015
- 7% believe it will take place in 2016
- 5% felt it will be in 2017 or later
- 23% said they did not know
Earlier today, Governor Mark Carney said the Bank of England will consider making changes to interest rates when the UK's unemployment rate reaches the 7% threshold - it was 7.1% in September.
Mr Carney said there was a "two in five chance" that the unemployment rate will make that threshold by the end of next year.
The governor of the Bank of England has admitted that people should not expect their wages to rise in real terms until mid-2014 at the earliest despite the growing economy.
Mark Carney told Channel 4 News: "I think some - not everybody across the country is feeling this, without question".
"There's still a million more people out of work than were in work prior to the crisis... but what is happening is 60,000 jobs per month, new jobs, are being created, most of those in the private sector, most of those full-time. And that's real work, real people".
Mr Carney acknowledged that real wages "are not picking up, they haven't been for a number of years".
Asked if he would be prepared to raise interest rates before the General Election, Mr Carney replied, "Well, absolutely."
The CEO of Sainsbury's has warned that while the British economy may be seeing positive signs of recovery, individual consumers are still finding their purchasing power reduced.
"I think what we're seeing is lots of good signs of recovery for the economy," Justin King told ITV News, "whether it be lower inflation or job creation and so on."
"But as far as individuals are concerned, they're seeing low pay rises, they're still seeing inflation - it came down yesterday but it was still 2.2% - and so on average they've got less money to spend.
"So whilst it's good news to feel that you're living and working in a country where things are getting better, in the end it's what happens to you as an individual that's going to make a difference to your shopping habits."