"We are slowly but surely fixing our country's economic problems"
- Chancellor of the Exchequer, George Osborne
On Friday, Chancellor of the Exchequer, George Osborne, unveiled tough Budget despite fears of another recession. The budget deficit is expected to stand at £121 billion, £120 billion and £108 billion extrapolated for the next two years. The Institute for Fiscal Studies said that another £23 billion of departmental spending cuts are about to come after the next election in 2015, or an extra real terms reduction in spending of 7.6%. The U.K. economy is now expected to expand by 0.6% this year compared with a previous forecast of 1.2%, the Office for Budget Responsibility said.
"We are slowly but surely fixing our country's economic problems," Osborne said, as he unveiled a series of measure aimed at boosting growth, including far-reaching infrastructure projects, while insisting that Britain is set to escape a new recession."We have now cut the (inherited) deficit, not by a quarter but by a third," the chancellor said as he outlined his tax and spending plans for 2013-14.
"Today, the Chancellor joined Twitter," Labour Party leader Ed Miliband said. "He could have got it all in 140 characters: Growth down. Borrowing up. Families hit. And millionaires laughing all the way to the bank. Hashtag: downgraded chancellor."
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