Public sector to foot bill for growth plan

Chancellor warned six years of austerity to come

George Osborne told the public sector workers and lower wages that will be the ones paying the bill for his attempts to revive the stagnant economy of Great Britain, and warned that growth lower and higher debt to force the country to support a record six years of austerity.

the eve of tomorrow's planned strike action on pensions, the chancellor put a freeze on public sector wages and reducing new financial assistance to low-wage workers to pay expenses additional schools, youth unemployment, housing and infrastructure spending.

Osborne, visited Brussels for an emergency meeting this evening with his fellow European finance ministers immediately after delivering his statement admitted that the fall and the inability to resolve the crisis in the tip of a Euro British economy is already fragile in a double-dip recession.

forecasts independent Office of Fiscal Responsibility showed that the government is on track to claim an extra £ 111 billion over the next five years, while unemployment will reach 2.8 million dollars and declining standards of living will continue to 2013. The OBR said job losses to total 710,000 public sector, compared with 400,000 who had already expected due to cuts in government spending.

Osborne prepares for the economy to grow 0.9% in 2011 to increase by only 0.7% next year - below 2.5% estimated in the budget in March . He said he expects the Bank of England to continue to support growth through low interest rates, which were 0.5% for over two and a half years, and pumping electronic money in the economy through quantitative easing. Osborne said the Treasury was now "comprehensive plans" to deal with a possible breakdown of the euro, and admitted. "If the rest of Europe heads into recession, it may be difficult to avoid in the UK"

amid fears that Europe has entered the phase of make or break your crisis, 10-year bond was Italian night approaching, the level of 8%.

The Chancellor announced a three-year spending to stimulate the potential for long-term growth of the economy, but said that the deterioration of public finances meant extra cool £ 5,000,000,000 infrastructure - an additional £ 1.2 billion for education, £ 400 for accommodation and the cost of the demolition of £ 1 billion in January increased fuel taxes and increases the limit of train fares and 6% -. We had to find savings elsewhere

caused anger among activists of the well-being through the demolition of an increase in child tax credits will result in children falling further 100,000 below the poverty line government, and was charged with causing the unions through the establishment of a two-year period at 1% cap on wage increases in the sector - well below the current inflation rate. It also marked the end of national pay bargaining in two years.

• Osborne said the current conditions of market turbulence means Britain "had to live within their means," but tonight Fitch, one of the three rating agencies warned that the coveted status AAA Britain could be at risk. "Like some other great sovereigns rated AAA, except for the establishment of measures have been adopted, the ability of UK public finances to absorb the economic and financial crisis resulting from the Public debt remains high, maintaining its "AAA" state has been largely exhausted, "he said.
• Osborne said the OBR now believes that the damage to the economy as a result of the debt crisis of 2008-09 was induced was deeper and more lasting that no thought. But the debt was down and the debt is reduced, he said. "It goes as fast as I wanted, because of damage to our economy by the ongoing financial crisis. B UT, we are ready to meet our fiscal rules. And we will see Britain through the storm debt. "

Paul Johnson, director of the Institute of Fiscal Studies Research Centre, said: "Two years of significant real reductions in public spending:. This is what the Chancellor promised in response to the deteriorated dramatically OBR macroeconomic forecasts to date, he had thought of four years of unprecedented cuts, as in modern times. Six years seems even more extraordinary. "

Ed Balls, the Chancellor of shadow, said: "After 18 months in power, the verdict is clear. Plan A has failed, and failed colossally With rising prices and rising unemployment, families, retirees and businesses that I know it hurts, and with billions more in loans to pay for rising unemployment, TODAY 'Today we learn the truth -. It's not just work "

The Conservatives were dismayed

who now have to spend in an election year pledged 15 billion pounds of additional spending cuts in the first two years of the next legislature, and recognize that they can having to go to a detailed agreement with its coalition partners before the general elections 2015 will show how both parties that the additional spending cuts in the two years following the election.

Figures released today show that the plans of the coalition that 80% of staff reductions in recent years will come from continued reductions in spending and only one fifth of the tax increases. Some right-wing conservatives have expressed their disappointment with the interventionist nature of the growth plan, compared to the work of Gordon Brown and blaming the excessive influence of the Liberal Democrats. Nick Clegg, the aid was convinced he had protected the poor in Britain, providing employment benefits and pensions have increased in line with inflation of 5%, and cutting benefits are loaded instead Credit prosecutors. The emphasis on capital investment, the breeding of two years and a program to help young unemployed people particularly as Lib Dem claimed victories.

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