British Finance Minister George Osborne unveiled the annual budget for the 2012-2013 fiscal year in parliament on Wednesday, announcing wide ranging tax reforms to reward work and support growth.

Osborne revised up Britain's growth forecast this year by 0.1 percentage point to 0.8 percent, while cutting its forecast for next year to 2 percent.

Meanwhile, predictions for 2014 remained unchanged at 2.7 percent for 2014 and 3 percent for 2015 and 2016.

The consumer price index for this year has been raised to 2.8 percent, and that for next year has been revised down by 0.2 percentage point to 1.9 percent.

Osborne said the coalition government's efforts to control its deficit remains on course, with the government borrowing forecast for 2011-2012 revised down to 126 billion pounds (199 billion U.S. dollars).

Britain's unemployment is expected to peak this year at 8.7 percent before falling each year to 6.3 percent by 2016-2017. The government also pledged to create one million new jobs in five years.

To boost the economy, Osborne will cut corporation tax to 24 percent from April and further down to 22 percent by 2014. This is set to enhance capital allowances for businesses setting up operations in enterprise zones in Scotland and Wales.

Taxes for small firms with a turnover of up to 77,000 pounds will be simplified. The government plans to supports local development with extra financing and funds. It is also considering enterprise loans for young people to start their own business.