This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/uk-politics-35672158

The article has changed 5 times. There is an RSS feed of changes available.

Version 1 Version 2
George Osborne warns of further spending cuts in Budget George Osborne warns of further spending cuts in Budget
(about 1 hour later)
Chancellor George Osborne has warned he may have to make fresh cuts to public spending in next month's budget. Chancellor George Osborne has warned he may have to make fresh cuts to public spending in next month's Budget.
Mr Osborne told BBC political editor Laura Kuenssberg that global economic turmoil and slower growth meant "we may need to undertake further reductions".Mr Osborne told BBC political editor Laura Kuenssberg that global economic turmoil and slower growth meant "we may need to undertake further reductions".
He slowed the pace of cuts in the last spending review, but said more savings were required as figures showed the UK economy was smaller than expected.He slowed the pace of cuts in the last spending review, but said more savings were required as figures showed the UK economy was smaller than expected.
Labour's John McDonnell said it was "a total humiliation" for Mr Osborne.Labour's John McDonnell said it was "a total humiliation" for Mr Osborne.
The chancellor is due to make his Budget statement on 16 March.The chancellor is due to make his Budget statement on 16 March.
Speaking exclusively to the BBC's political editor during a visit to China, Mr Osborne said he would rather look for extra cuts now than risk breaking his own manifesto commitment to achieve a surplus in the budget by the end of this Parliament.Speaking exclusively to the BBC's political editor during a visit to China, Mr Osborne said he would rather look for extra cuts now than risk breaking his own manifesto commitment to achieve a surplus in the budget by the end of this Parliament.
The chancellor did not completely rule out raising taxes in the event of a further slowdown in growth, but said that now was not the time for "significant" tax hikes.The chancellor did not completely rule out raising taxes in the event of a further slowdown in growth, but said that now was not the time for "significant" tax hikes.
'Rainy day''Rainy day'
He would not spell out the details of any further cuts, but he said the Conservatives would stick to their manifesto pledge to protect some government departments.He would not spell out the details of any further cuts, but he said the Conservatives would stick to their manifesto pledge to protect some government departments.
It is understood he would not look to increase the level of cuts dramatically but would initially seek to make further efficiencies in government departments.It is understood he would not look to increase the level of cuts dramatically but would initially seek to make further efficiencies in government departments.
He said in the exclusive interview: "We may need to undertake further reductions in spending because this country can only afford what it can afford and we'll address that in the Budget because I'm absolutely clear we've got to root our country in the principle that we live within our means and that we have economic security."He said in the exclusive interview: "We may need to undertake further reductions in spending because this country can only afford what it can afford and we'll address that in the Budget because I'm absolutely clear we've got to root our country in the principle that we live within our means and that we have economic security."
He went on to say the "whole purpose of our economic plan was to have a budget surplus.He went on to say the "whole purpose of our economic plan was to have a budget surplus.
"It is a rainy day plan - it is all about anticipating the future and because things have got markedly worse in the global economy, because we have more facts now from the Office for National Statistics about the size of the British economy and, frankly, because we got big challenges at home to make the economy more productive even as more people get work."It is a rainy day plan - it is all about anticipating the future and because things have got markedly worse in the global economy, because we have more facts now from the Office for National Statistics about the size of the British economy and, frankly, because we got big challenges at home to make the economy more productive even as more people get work.
"Because of all of those things, we have to respond to those events."Because of all of those things, we have to respond to those events.
"So that's what our plan is rooted in and it may require further reductions in spending. I'll address that in the Budget but people should know this of me: I will do what is required to keep our country safe and secure.""So that's what our plan is rooted in and it may require further reductions in spending. I'll address that in the Budget but people should know this of me: I will do what is required to keep our country safe and secure."
Analysis
By Laura Kuenssberg, BBC political editor
The chancellor wants to keep to his self-imposed rule of getting the books into surplus by the end of the Parliament. He could relax that rule and slow down the pace of the cuts but that's not what appears to be on his agenda.
Instead, it seems he'd rather find the money somewhere.
He wouldn't say where he'd look for cuts, but you can assume departments ministers have already pledged to protect will be safe from further austerity.
That of course means potentially tighter squeezes elsewhere.
Read more from Laura
Decisions about the level of potential future cuts will only be made once the chancellor receives the official assessments from the Office for Budget Responsibility, he added.Decisions about the level of potential future cuts will only be made once the chancellor receives the official assessments from the Office for Budget Responsibility, he added.
The extra cuts would be likely to be made towards the end of the Parliament, before 2020.The extra cuts would be likely to be made towards the end of the Parliament, before 2020.
In his November statement, Mr Osborne watered down planned £4.4bn cuts to tax credits and eased back on planned spending cuts to the Home Office and other departments.In his November statement, Mr Osborne watered down planned £4.4bn cuts to tax credits and eased back on planned spending cuts to the Home Office and other departments.
He was able to do this due to a combination of better tax receipts and lower interest payments on debt.He was able to do this due to a combination of better tax receipts and lower interest payments on debt.
'Built on sand''Built on sand'
Labour's shadow chancellor, John McDonnell, said the British people would end up paying for Mr Osborne's own failures.Labour's shadow chancellor, John McDonnell, said the British people would end up paying for Mr Osborne's own failures.
He accused the chancellor of having "sneaked off to China to admit what Labour have been saying for months - that his recovery is built on sand".He accused the chancellor of having "sneaked off to China to admit what Labour have been saying for months - that his recovery is built on sand".
"Far from paying our way, Osborne's short-term economics means Britain is deeper and deeper in hock to the rest of the world," he said."Far from paying our way, Osborne's short-term economics means Britain is deeper and deeper in hock to the rest of the world," he said.
"If the bankers' chancellor had been doing his job properly he would be collecting taxes from Google and other tax-dodgers. Instead he is threatening the British people with paying an even higher price for his own failures.""If the bankers' chancellor had been doing his job properly he would be collecting taxes from Google and other tax-dodgers. Instead he is threatening the British people with paying an even higher price for his own failures."
Jonathan Isaby, chief executive of the Taxpayers' Alliance campaign group, said it had been "complacent" to slow down the pace of savings at the last spending review.Jonathan Isaby, chief executive of the Taxpayers' Alliance campaign group, said it had been "complacent" to slow down the pace of savings at the last spending review.
"Tough action is needed to balance the nation's books and ease the burden on current and future taxpayers. The Budget is the right moment to set a path for the country to live within taxpayers' means," he added."Tough action is needed to balance the nation's books and ease the burden on current and future taxpayers. The Budget is the right moment to set a path for the country to live within taxpayers' means," he added.