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Further £25 billion of cuts must be made after next election, warns George Osborne

By CCampbell  |  Posted: January 06, 2014

GeorgeOsborne

Chancellor George Osborne

Comments (5)

Chancellor George Osborne warns Britain will need to make another £25billion in spending cuts after the 2015 election.

The Chancellor said difficult decisions would have to be made about where they are made.

But he signalled the nation's welfare budget should bear the brunt of another round of cost-cutting.

Mr Osborne will use a speech in Birmingham today to warn the country faces a year of hard truths in 2014.

He will caution voters that tax cuts can only be afforded if further significant reductions are made in public spending.

Despite the economic recovery gathering pace, underlying problems are said to remain.

He told BBC Radio 4's Today programme: "We need to find a further 25 billion pounds of cuts after the election.

"We have to make decisions about where those cuts are to be found."

For full coverage of George Osborne's speech today, visit Southwestbusiness.co.uk.

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5 comments

  • RoadWombat  |  January 07 2014, 5:03AM

    The overseas aid is usually to "pay off" troublesome dictators in tin pot little countries in order to keep them relatively stable. You either do that (unattractive though it is) or it ends up costing a great deal more in sending in peacekeeping missions, the UN etc. etc, not to mention the resultant casualties if you end up having a war with them. It isn't all nicey-nicey, "let's help the little African boy get clean water and a good education" charity, you know!

  • spindles12  |  January 06 2014, 1:37PM

    I agree that after Labour's "spend spend, spend" attitude, using borowed money that has left the country with a debt that could never be paid off, there needs to be a crackdown on benefits as well as other things. One of the "other things" is Overseas Aid. If we didn't give billions of pounds to countries, some of which that are either corrupt, have their own space programme or despise us, we'd have plenty of money to go round. What's that saying, ah yes, "charity begins at home". Its a pity that the UK Government, whether Conservative or Labour, don't think about that before giving our money away. Only after getting the country into a state where we don't have any debts and there is no "poverty" can we say THAT'S the time to give money away.

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  • uk_socrates  |  January 06 2014, 12:45PM

    Roughly £50 billion a year is wasted on debt interest payments alone. The actual national debt stands somewhere just above £1 trillion (but we rarely talk about this, as realistically this will never be paid off). On top of this we have some of the highest personal debts in the world. Wages have largely stayed the same, whilst food and energy costs have risen. There is also a large amount of people that work in the private sector, particularly retail and hospitality who are living from pay-day loan to pay-day loan. There is also another growing crisis, there is now a growing number of people who earn so little that they pay no tax and little if any N.I contributions. This is particularly common in some fast-food outlets, and retail outlets where people now struggle to get full-time contracts and instead are employed on either casual contracts or 16-hour contracts with the promise of potential over-time. Its a complete mess. People have forgotten that the private sector is suppose to fund the public sector. On top of this we have an aging population, which will only put the NHS under more pressure. The press like to make a big deal about "spending cuts" but the big elephant in the room is public sector contracts which need to be changed. Sadly wages in the public sector need to come down and terms changed. For example the current solution to the shortage of doctors on a+e at night is to throw more money at doctors. Why not just change the contracts and require them to work one weekend a month instead? Another good example of where the public sector has become bloated is legal aid. Only today solicitors staged a walkout. (Sadly taxpayers have basically been funding large wages in what has become a big and expensive industry that relies heavily on state funding). The future does not look to good.

  • IsitJimKerr  |  January 06 2014, 11:33AM

    Selina, obviously not, because Labour's plan was to borrow even more, now shown by Europe and USA as NOT the way to get this country going again. Like it or not, the Tories, sorry coalition, have chosen a hard, but correct way forward.

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  • SELINA30  |  January 06 2014, 11:04AM

    Is this George Osbourne giving advice to Ed Balls?

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