View more on these topics

Osborne says £25bn more spending cuts needed after 2015

Chancellor George Osborne says he will only cut taxes if there are further major reductions in public spending as he warned the recovery is not yet complete.

In a speech in Birmingham today Osborne will say a further £25bn worth of cuts are needed after the next election and there is “still a long way to go” to eliminate the deficit.

Sky News reports he will say: “As a result of the painful cuts we’ve made, the deficit is down by a third and we’re borrowing nearly £3,000 less for every one of you and for every family in the country.

“That’s the good news. The bad news is: there’s still a long way to go. We’re borrowing around £100bn a year – and paying half that money a year in interest just to service our debts. We’ve got to make more cuts.

“That’s why 2014 is the year of hard truths. The year when Britain faces a choice.

“Do we say ‘the worst is over; back we go to our bad habits of borrowing and spending and living beyond our means – and let the next generation pay the bill’.

“Or do we say to ourselves ‘yes, because of our plan, things are getting better. But there is still a long way to go and there are big, underlying problems we have to fix in our economy’.”

Speaking to the BBC this morning, Osborne also backed benefits for wealthy pensioners, claiming cutting them would only save tens of millions.

Instead he favoured cutting housing benefit for under 25s as it was unfair on youngsters who were forced to live at home.


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Perhaps we could start by reclaiming the “DISGUSTING” pay rise they have just awarded themselves.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm