Britain can expect further government spending cuts as it contends with a year of ‘hard truths’, chancellor George Osborne has indicated.
Speaking in Birmingham this morning, Osborne said it would be necessary to make £60bn of further cuts over the next four years in order to support the economic recovery.
‘We’ve got to make more cuts,’ Osborne said. ‘2014 is the year of hard truths.’
Warning welfare could not be protected from further substantial reductions, the chancellor said £12bn of further welfare cuts might be necessary in the first two years of the next Parliament.
‘There is still a long way to go – and there are big, underlying problems we have to fix in our economy. More repairs. More cuts. More difficult decisions,’ Osborne added.
‘We have a choice in 2014: We can give up, go back to square one, risk everything. Or we can confront the hard truth that more difficult decisions are needed – and work through the plan that is turning Britain around.’
‘I say: let’s finish the job.’
Reacting to the speech, trade union GMB urged Osborne to improve wage levels and construct more affordable houses in order to support economic recovery.
Paul Kenny, GMB general secretary, said: ‘Allowing councils to build enough houses at affordable rents would save billions from the £23bn per year paid in housing benefits much of it to private landlords.’
