Just days after taking over the Treasury, the man in charge of Britain’s finances George Osborne has outlined plans to cut the equivalent of 7.25 billion euros of government spending.
Osbourne said slashing the record UK budget deficit is the top priority: “In the space of one week we have found and agreed to cut 6.25 billion pounds of wasteful spending across public sector. Of that, 500 million pounds will be recycled and used to invest in targeted measures to improve Britain’s long term growth credential and build a fairer society.”
Osbourne said this is just the start and warned there will be much worse in his emergency budget next month.
Analysts called the cuts a useful downpayment on tackling the 190 billion euro budget deficit but added much bigger fiscal tightening was needed.
Britain’s trade unions complained the cuts would hit services, damage the UK economy and put thousands of jobs at risk.
Britain’s announcement comes on the heels of emergency austerity measures in other European Union countries weighed down by hefty deficits, including Spain and Portugal, as the region’s policymakers look to prevent a debt crisis from spreading beyond Greece.