British gov’t plans more austerity

British Chancellor George Osborne says the economy is “out of intensive care” but that government would push ahead with its sweeping spending cuts.

Osborne made the remarks in preparation for a fresh round of austerity, which he is to announce on Wednesday.

The new £11.5 billion cuts package will be launched following the planned May 2015 general election after Osborne completed talks with government departments for the extra austerity deal on Sunday.

“We have got to stick at the economic plan that is reducing our debts, making our businesses more competitive, helping to create jobs,” he told BBC television.

However he added that although the economy is “out of intensive care” there “certainly is the chance for a relapse” if the government abandons its spending cuts program.

The new cutbacks have been supported by the opposition Labour though the party it would increase spending on capital projects such as railways if it wins the 2015 vote.

Critics of the government have been pushing it to increase investment in capital projects to shore up the frail economy.

Osborne was given a boost on Friday after figures from the Office for National Statistics showed signs that the economy could be gaining strength after two years of stagnation.

According to ONS, public sector net borrowing stood at £8.8 billion in May that was a slight drop due to one-off factors.

AMR/HE

This article originally appeared on: Press TV