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George Osborne Warns Of Further Spending Cuts In Budget

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Link: http://www.bbc.co.uk/news/uk-politics-35672158

Chancellor George Osborne has warned he may have to make fresh cuts to public spending in next month's budget.

He told BBC political editor Laura Kuenssberg that global economic turmoil and slower growth meant "we may need to undertake further reductions".

Mr Osborne slowed the pace of spending cuts in his November spending review.

But recent figures showing the UK economy was smaller than expected meant savings must be found in his Budget statement on 17 March, he said.

Follow the latest developments

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Speaking exclusively to the BBC's political editor during a visit to China, Mr Osborne said he would rather look for extra cuts now than risk breaking his own manifesto commitment to achieve a surplus in the budget by the end of this Parliament.

The chancellor did not completely rule out raising taxes in the event of a further slowdown in growth, but said that now was not the time for "significant" tax hikes.

'Rainy day'

He would not spell out the details of any further cuts, but he said the Conservatives would stick to their manifesto pledge to protect some government departments.

It is understood he would not look to increase the level of cuts dramatically but would initially seek to make further efficiencies in government departments.

He said in the exclusive interview: "We may need to undertake further reductions in spending because this country can only afford what it can afford and we'll address that in the Budget because I'm absolutely clear we've got to root our country in the principle that we live within our means and that we have economic security."

He went on to say the "whole purpose of our economic plan was to have a budget surplus.

"It is a rainy day plan - it is all about anticipating the future and because things have got markedly worse in the global economy, because we have more facts now from the Office for National Statistics about the size of the British economy and, frankly, because we got big challenges at home to make the economy more productive even as more people get work.

"Because of all of those things, we have to respond to those events.

"So that's what our plan is rooted in and it may require further reductions in spending. I'll address that in the Budget but people should know this of me: I will do what is required to keep our country safe and secure."

Decisions about the level of potential future cuts will only be made once the chancellor receives the official assessments from the Office for Budget Responsibility, he added.

The extra cuts would be likely to be made towards the end of the Parliament, before 2020.

In his November statement, Mr Osborne watered down planned £4.4bn cuts to tax credits and eased back on planned spending cuts to the Home Office and other departments.

He was able to do this due to a combination of better tax receipts and lower interest payments on

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"I'm absolutely clear we've got to root our country in the principle that we live within our means and that we have economic security."

Lol, lol and then a little more lollage.

Any time you wanna have a chat with your banking pals about this core matter you go right ahead G.

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More belt tightening......any more and will no longer be going out spending, making future spending plans.....make do and mend, learn how do do things differently for less but for the better...... ;)

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All this from a chancellor that tripled the national debt.

Forgetting the numerics for a moment, but how do you turn a battleship? As no fan of GO I still recognise that years of Blair and Brown's profligacy and the CDO etc implosion fairly drastic measures had to be taken. The national debt was already set to explode before the coalition took office and all borrowers (and those who should have bought instead of standing waiting for Armageddon) have benefitted from the longest/lowest petiod of interest rates ever The same low rates have enabled the ND to be serviced far more effectively thsn could have been expected, savers, ungortunately, have been done over.

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On the radio he was quoted as saying the recovery and GDP were weaker than expected - so more cuts in public sector spending.

Amazing how quickly things can change after a general election.

Apart from that I imagine the UK economy is also increasingly feeling the increasing ineffectiveness of debt in creating a statistical increase in the growth figures.

Edited by billybong

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Not easy to decipher Osborne's seasoned doubletalk but I'll have a go:

'More cuts'? Means this year's primary deficit will be >£80bn.

'Storm clouds gathering' = no balanced budget in this parliament, just like the last.

'Economy floundering'? More QE and negative i.r.'s ahoy.

'A new deal on Europe'? Means 'I love the EU unconditionally and never want to leave.'

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Just as MPs are awarded ANOTHER pay rise George Osborne warns he may have to slash spending further to get a surplus. The announcement is set to humiliate Mr Osborne as he faces revising his plans after just three months. At the spending review, Mr Osborne said he had eased the pace of cuts in light of an improving economy - insisting the economy would be £27billion better off than expected by 2020.

It comes as the Independent Parliamentary Standards Authority (IPSA) confirmed today MPs will be given a new 1.3 per cent pay rise from April, just a year after their pay rose by 10 per cent.

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NHS and welfare still massively bloated state spending

More pointless tax-cuts then. That'll keep his state cutting going. Can't be too mean to Google etc either as it'll interfere with the ideology lol !

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