LONDON: Finance minister George Osborne yesterday said the British economy was “out of intensive care” but that government would stick to a path of deep cuts to public spending, as he prepared to announce a fresh round of austerity.
The chancellor of the exchequer, who will deliver his spending review on Wednesday, is expected to spell out £11.5bn ($17.7bn) of cuts to government ministries following the planned May 2015 general election.
Osborne belongs to Prime Minister David Cameron’s Conservative party, which shares power with junior coalition partner the Liberal Democrats.
“I think we can turn this country around but we have got to stick at the plan.... We have got to stick at the economic plan that is reducing our debts, making our businesses more competitive, helping to create jobs, making sure Britain can win the global race,” he told BBC television.
Although the economy was “out of intensive care” there “certainly is the chance for a relapse” if measures to bring down the deficit were abandoned, he added.
Ed Balls, economy spokesman for the main opposition Labour Party, said yesterday Labour would likely stick to Osborne’s plans on day-to-day spending for 2015-16 if it won at the national polls in two years’ time. But he said Labour could increase spending on capital projects such as railways should it return to power.
Besides the spending reductions Osborne was set to announce plans to use the savings to invest in education, science, roads and railways.
AFP
