British Chancellor George Osborne says the economy is “out of intensive care” but that government would push ahead with its sweeping spending cuts.\n<\/p>\n
Osborne made the remarks in preparation for a fresh round of austerity, which he is to announce on Wednesday.\n<\/p>\n
The new \u00a311.5 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.\n<\/p>\n
“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.\n<\/p>\n
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.\n<\/p>\n
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.\n<\/p>\n
Critics of the government have been pushing it to increase investment in capital projects to shore up the frail economy.\n<\/p>\n
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.\n<\/p>\n
According to ONS, public sector net borrowing stood at \u00a38.8 billion in May that was a slight drop due to one-off factors.\n<\/p>\n
AMR\/HE<\/p>\n