Budget 2016: Chancellor warns of further spending cuts

Chancellor, George Osborne has intimated that there will be further public spending cuts included in this week’s Budget 2016, stating on the BBC’s Andrew Marr show that savings “equivalent to 50p in every £100” of public spending had to be made by 2020.

Mr Osborne said that the world was “more uncertain” than at any other time since the global financial crisis in the last decade and insisted that the UK needed to live within its means in order to withstand any future economic downturn.

“My message in this Budget is that the world is a more uncertain place than at any time since the financial crisis and we need to act now so we don’t pay later,” said Osborne.

“That is why I need to find additional savings equivalent to 50p in every £100 the government spends by the end of the decade, because we’ve got to live within our means to stay secure.

“That’s the way we make Britain fit for the future.”

The Chancellor stated that he felt the savings were realistic, but he would not be drawn on where the savings would be made when questioned at the weekend.

Fuel duty is rumoured to be on the consideration list, although many Conservative MPs are campaigning against any rise in the price of petrol.

“On fuel duty, we had a manifesto commitment there and we have pencilled in fuel duty plans going forward but what I would say is, every time we can have our economy more competitive, we do,” added Osborne.

The Chancellor also refuted the prospect of hitting the most vulnerable people in the Budget via cuts to disability benefits, known as Personal Independence Payments (PIP).

Osborne reiterated his promise to get Britain’s books into surplus by 2020, but warned against the UK leaving the EU, stating it would “create an economic shock” that would “cost jobs” and “damage living standards”.

TaxAssist Accountants will be covering the Budget 2016 live on the day here, with a summary PDF to follow to put all of our clients firmly in the picture.

Date published 14 Mar 2016 | Last updated 14 Mar 2016