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
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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