Deputy Prime Minister Nick Clegg will say tackling Britain’s record deficit is the government’s top priority, as the independent budget office makes new forecasts that will be used for next week’s emergency budget .
Until recently, there was almost complete agreement on the need for a period of synchronized austerity across Europe. This consensus, at a time of private- sector weakness and banking fragility, is very worrying.
Britain has a bigger budget hole to fill than the previous Labour government forecast, the country’s fiscal watchdog said in an initial report that sets the stage for the deepest spending cuts in a generation.
Britain posted its largest April budget deficit since monthly records began in 1993, highlighting the scale of the squeeze to come as Chancellor of the Exchequer George Osborne prepares to deliver an emergency budget.
U.K. Prime Minister David Cameron ’s planned budget cuts increases the chance the economy will slip back into recession, said Geoffrey Dicks , who heads economic forecasting at Britain’s new fiscal watchdog.