The service sector continues to drive the UK's economic recovery, according to figures released today by the Office for National Statistics (ONS).

The sector - which accounts for more than three-quarters of economic output - rose by 0.8% in the fourth quarter, matching its performance in the previous quarter.

Overall, the UK economy grew by 1.9 per cent in 2013, its strongest rate since 2007.

Despite the encouraging news for Chancellor George Osborne, UK economic output is still 1.3 per cent below its pre-recession level.

Meanwhile, inflation has fallen to the Bank of England's target rate of two per cent for the first time since December 2009.