Clegg: Osborne's spending cuts plan a 'monumental mistake'

Benefits for young people are to be targeted by the Chancellor as he seeks to cut £25bn from public spending, including £12bn from welfare. But Nick Clegg said it was a "monumental mistake" to make the working-age poor bear the brunt of the cuts.

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George Osborne: We've got to make more cuts

Chancellor George Osborne will lay out the case for persevering with the government's austerity drive in a speech in Birmingham later today, in which he will say:

As a result of the painful cuts we've made, the deficit is down by a third and we're borrowing nearly £3,000 less for every one of you and for every family in the country.

That's the good news. The bad news is: there's still a long way to go.

We're borrowing around £100 billion a year - and paying half that money a year in interest just to service our debts. We've got to make more cuts.

– chancellor george osborne

Chancellor to outline further cuts in 'year of hard truths'

Chancellor George Osborne will brand 2014 the "year of hard truths" in a speech setting out his plans for further austerity measures later today.

Chancellor George Osborne will argue that there are still “big underlying problems” in the economy Credit: Nigel Roddis/PA Wire

The government is still spending too much money servicing its debts, he will argue, despite cutting the deficit by around a third through sweeping cuts to public spending.

He will say: "There’s still a long way to go. We’re borrowing around £100?billion a year — and paying half that money a year in interest just to service our debts. We’ve got to make more cuts."

Mr Osborne will deliver his speech at the premises of a manufacturing company in Birmingham.

Read: David Cameron pledges 'triple lock' on state pension

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