Sir Mervyn King said that the recovery of the British economy will depend very much on wider conditions in the world economy.
Announcing the Bank of England's quarterly forecast, he said there is a limit to what domestic measures can achieve.
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The former England captain said he was "overwhelmed" by the messages he received from football fans after Rebecca died from cancer.
David Cameron said the measure, which will save £4 million by 2020, showed a commitment to his "all in this together" approach.
The party has dropped its opposition to an in/out referendum on EU membership and now supports a vote, acting leader Harriet Harman said.