Chancellor George Osborne has revealed on Sunday planning for making fresh cuts to public spending while meeting his goal for balancing Britain's books by 2020. He has also called upon the Britons to act now rather than to pay later. The UK Treasury Secretary has discussed his budgetary plan while addressing the BBC's Andrew Marr Show.
The UK Chancellor has sought to lower expectations ahead of his annual budget statement on Wednesday. The global economic outlook has been deteriorated since adoption of tax and spending plans in November and hence further action is required to close the budget deficit, observes Mr. Osborne, according to a report published in The Wall Street Journal.
The UK Treasury Chief has also discussed his new goal for saving 50p in every £100 of government spending by 2020. He doesn't consider the amount as huge compared to the scheme of things. However, Mr. Osborne has also hinted for holding back an expected rise in fuel duty in the Budget, reports Daily Mail.
The UK Chancellor considers his savings planning as achievable without mentioning any area where the axe will fall. He intends to boost productivity, improve Britain's schools and infrastructure while making taxes more competitive. However, he has out-righted claims that majority of the vulnerable people will be hit in the budget through cuts to disability benefits known as Personal Independence Payments (PIP), reports BBC.
The Office for Budget Responsibility has forecast in November that Chancellor of the Exchequer will be forced to borrow £72.5 billion ($103.5 billion) in the 12 months to March. Borrowing has also been predicted to fall during future years and deficit to disappear entirely by 2020. But the chancellor is going to overshoot the borrowing forecasts this year due to weaker economic growth and lower than expected tax receipts. Meanwhile, economists have warned that the chancellor remains at risk of missing his self imposed targets without extra spending cuts or higher taxes. Mr. Osborne has also warned against Brexit saying the move will create an economic shock costing jobs and damaging living standards. Brexit campaigners argue that UK may strike favorable trade deals with the EU after exit. John McDonnell, Labour's shadow chancellor, has called for more long term investment in the UK economy, while his addressing in the Marr show. He has accused the chancellor for reducing investment to 1.4% of GDP while citing OECD estimated figure of at least 3%.
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