Britain's economy should expand by more than expected this year, but lawmakers risk derailing the recovery with political wrangling and short-termism, business leaders have warned.
UK gross domestic product (GDP) should grow by 3% in 2014, up from a previous prediction of 2.6%, according to forecasts by the Confederation of British Industry (CBI).
In 2015, the CBI expects the economy to expand by 2.7% rather than the 2.5% it forecast previously.
The economy grew by 0.8% in the first quarter of 2014 and quarter-on-quarter GDP growth of 0.7% is expected for the rest of this year and next.
Forecast for first rise in Bank Rate brought forward
The CBI is also bringing forward its expectations of an interest rate rise to the first quarter of 2015, when it forecasts the first 0.25 percentage point increase. That is one quarter earlier than estimated by the likes of Barclays Research, for example.
But it said political uncertainty and whims pose a major risk to the revival.
The CBI wants the government to eliminate the budget deficit, scrap immigration reduction targets and ensure a long-term strategic approach to big infrastructure projects.
It also demanded an end to talk about a UK exit from the European Union, which it says would damage the economy and deter potential inward investment.
CBI Director-General John Cridland said: "The UK now has more stable economic foundations and political risks must not jeopardise this.
"The recovery is advancing after a strong performance in the first quarter of 2014. Prospects are bright and we expect the recovery to broaden out this year, with greater support from business investment in particular.
"Businesses recognise the realities of election time but want all parties to ensure their policies make a positive difference. Politicians must be wary of the risk of headline-grabbing policies that weaken investment, opportunity and jobs."
House price bubble
The CBI also warned the government and the Bank of England to be alert to the risks of a house price bubble, particularly in London.
London house prices are 25% above their peak in 2008, but prices for the rest of the UK excluding London are still 2% below their pre-recession high.
House price inflation is expected to rise to 8.2% this year from 3.6% in 2013 and 5.1% next year.
Cridland said: "We have to remain alert to the risks posed by unsustainable house price inflation."
Business investment was 8.7% above its level a year ago in the final quarter of 2013. The CBI expects investment to rise 8.3% this year and 9.1% next year.
However, it expects only small support to growth from net trade in 2014 and 2015.
While the UK's export performance should strengthen as global growth picks up, stronger domestic demand will boost imports.
Momentum in household spending should fade somewhat later this year as consumer confidence is unlikely to improve at the same pace, it added.
But a recovery in real wages and productivity will provide a firmer footing further ahead and consumer spending should rise 2.4% overall this year and next.