Figures and forecasts paint a gloomy picture for Britain

The 1.5 per cent increase – three times larger than first thought – represented the biggest quarterly rise in government consumption since the depths of the slump in the last three months of 2008.

The Office for National Statistics' (ONS) detailed figures showed the spree added 0.4 per cent to national output – greater than the 0.3 per cent rise in gross domestic product recorded by the overall economy.

The helping hand for the recovery will not be repeated in future following Chancellor George Osborne's emergency Budget, in which savage spending cuts and tax increases to deal with the deficit were unveiled.

Investec chief economist Philip Shaw said: "The impact of strong government spending, ahead of the election period, was very visible. The forthcoming era of austerity will soon consign increases of these magnitudes to the annals of history."

Yesterday's figures also showed the UK economy's nosedive during the recession was even steeper than first feared. Output slumped 6.4 per cent from its peak in the first three months of 2008 – larger than the 6.2 per cent slide previously estimated.

Data showed production output rising 1 per cent in the first quarter of this year and an upward revision for growth from the UK's powerhouse services firms to 0.3 per cent, although this was still well down on the previous quarter.

And hopes of a boost to the economy from a weaker pound boosting exports were dashed as exports fell 1.6 per cent – the worst decline for a year.

The squeeze on households from the impact of recession and the return of VAT to 17.5 per cent in January was also shown in a 0.1 per cent fall in consumer spending. The share of household income saved also fell for the second quarter in a row, to 6.9 per cent.

Experts said the figures heightened the chances of a double-dip recession with the pressure on households set to increase when emergency Budget measures – including a rise of VAT to 20 per cent – kick in and spending cuts begin to be felt.