GBP/USD Britian: Rebound, Not Really

Posted by: : Shayne HeffernanPosted on: January 6, 2014 GBP/USD Britian: Rebound, Not Really

GBP/USD Britian: Rebound, Not Really

British finance minister George Osborne warned the government needs to find an extra £25 billion of cuts after next year’s general election.

Osborne, the chancellor of the exchequer, will warn that 2014 is to be the year of “hard truths” and that although Britain had cut the budget deficit, it was still borrowing £100 billion a year.

“We need to find a further £25 billion of cuts after the election. We have to make decisions about where those cuts are to be found,” he told the state broadcaster BBC radio.

“We have to make decisions about whether we seek them in departments or whether we seek them in the welfare budget. But the reason we need to make those savings, this is not an end in itself, this is a means to an end.”

Osborne said that there was no “magic wand” he could wave to make Britain richer.

He was to tell an audience in central England that there is “still a long way to go” in reducing the public deficit, despite three years of austerity since the Conservative-Liberal Democrat coalition came to power.

“As a result of the painful cuts we’ve made, the deficit is down by a third,” he was to say, according to pre-released extracts. “That’s the good news.

“We’re borrowing around £100 billion a year – and paying half that money a year in interest just to service our debts.

“We’ve got to make more cuts. That’s why 2014 is the year of hard truths… the year when Britain faces a choice.”

Prime Minister David Cameron on Sunday promised any revenue from tax cuts would benefit lower income earners, and told pensioners they would continue to receive guaranteed rises in their state payouts until at least 2020 if the Conservatives win the next general election.

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Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.
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