UK’s Osborne says spending cut profile similar to budget

LONDON (BestGrowthStock) – The UK government has not significantly altered the profile of its planned public spending cuts from that outlined in June, finance minister George Osborne said on Wednesday.

There had been some speculation the government would “reprofile” some of its planned cuts because of the cost of breaking contracts — something investors may have interpreted as a softening in the government’s tough fiscal stance.

“I can confirm that the current spending totals I set out in the budget for each of the next four years are the same as the current spending totals I set out today,” Osborne told parliament. “They have not changed.

However, Osborne said capital spending would be about 2 billion pounds ($3 billion) a year higher than set out in the budget, at 51 billion pounds next year, followed by 49 billion pounds, then 46 billion, and 47 billion pounds in 2014/15. Britain’s coalition government is planning to axe public spending by more than 80 billion pounds over the next five years in an effort to eliminate a budget deficit running at around 11 percent of gross domestic product (GDP).

(Reporting by Christina Fincher; Editing by Ruth Pitchford)

UK’s Osborne says spending cut profile similar to budget