Bloomberg News

U.K. Deficit-Cut Plan Is ‘Flexible,’ Osborne Tells Telegraph

October 01, 2011

Oct. 1 (Bloomberg) -- U.K. Chancellor of the Exchequer George Osborne said his deficit-cut plan is “flexible” as slower-than-expected economic growth may delay reducing the shortfall as targeted, the Daily Telegraph reported, citing an interview.

The government will probably be unable to cut taxes to boost flagging economic growth before the next general election in 2015, Osborne told the newspaper.

“I’m not somebody who believes you can fund lower taxes by borrowing more money,” he told the newspaper.

The current financial crisis is “at least as serious” as the global credit crunch that followed the collapse of Lehman Brothers Holdings Inc. in 2008, said Osborne, who is to address a Conservative Party conference on Oct. 3, the Telegraph said.

Osborne said his No. 1 priority is tackling the budget deficit and to keep the U.K. “safe and secure” in the current financial turmoil, according to the Telegraph.

--Editors: Steve Bailey, Alex Nicholson

To contact the reporter on this story: Agnes Lovasz in London at alovasz@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


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