Reports in the Daily Telegraph state that Britain faces a fresh round of government spending cuts. The Chancellor, George Osborne, warned that the UK must “act now or pay later” in the face of global economic uncertainty.

The report said that ahead of the budget, Mr Osborne will unveil additional savings equivalent to 50p for every £100 of government spending – around £4bn –  to meet his target to balance the books by the end of the decade.

As the economy is now projected to be smaller than first forecast in November’s Autumn Statement, the Chancellor is facing an £18bn hole in public finances. this position will force the treasury to carry out deeper spending cuts in order to hit its target to return the UK to a budget surplus by 2020.

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