Chancellor George Osborne has warned of a further £25bn cut to spending after the next election.
In a speech in Birmingham Mr Osborne has said that the economy was far from fixed and spoke is speaking of a “year of hard truths” ahead, reports the BBC.
Mr Osborne is suggesting making welfare savings by cutting housing benefit for under-25s and restricting council housing for people earning over £65,000 a year.
In his speech Mr Osborne said: “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’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’?”
The Institute for Fiscal Studies has said that the £25bn spending cuts target looks “tough” to achieve, especially if a future government continues to ring-fence spending on the health service and schools in England, alongside pensions.
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