LONDON (MNI) – The budget deficit is still far too high and there
will be no unfunded giveaways in the upcoming Budget, Chancellor of the
Exchequer George Osborne says in a speech Tuesday.
He pledges to maintain fiscal discipline in the March 21 Budget,
saying the government’s fiscal tightening has ensured credibility and
low interest rates and that the economy is now rebalancing towards
investment and exports and away from consumption led growth.
“By facing difficult decisions head on, we have won the credibility
which will allow us to constrain inflationary pressure, support long
term low interest rates and provided the stability that creates the
space for private sector investment,” he says.
“I can tell you: we are not going to put that credibility and
stability and low interest rates at risk,” Osborne adds.
“Our action is bringing the deficit down – but it is still far too
high,” he says.
“The days of un-funded giveaways are over – and they’re not coming
back in this Budget. Everything has to be paid for,” he says in the
speech to the EEF Manufacturers dinner.
Osborne also says that despite the challenging economic outlook and
oil price spike the economy is rebalancing towards investment and
exports.
He warns against protectionism, saying it has not flourished in the
UK.
The speech is set to be Osborne’s last significant one before
Budget day.
— London newsroom: 4420 7862 7491 email: drobinson@marketnews.com
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