Britain's top business lobby upgraded its economic growth forecasts for this year and next on Monday and said it expects to see marked improvements in British business investment and productivity.
The Confederation of British Industry predicted Britain's economy will grow 3% this year, raising its forecast from 2.6% previously.
It also upped its outlook for next year to show growth of 2.7%, compared with 2.5% earlier.
The CBI pointed to rising business investment as firms become more confident about strength of the upturn, helping to end years of poor productivity that has perplexed policymakers.
The CBI said it expects business investment growth of 8.3% this year and 9.1% next year.
But the it warned there were risks to its outlook - chief among them political uncertainty surrounding next year's general election and the Scottish independence referendum this September.
It called on politicians to avoid making "damaging market interventions".
The opposition Labour party has said it will stand up for voters by checking the interests of big business, and announced it would freeze electricity prices for 20 months if it wins power - a strategy dismissed as "anti-business" by the government.
