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Osborne gives 'cautious welcome' to Greek deal

George Osborne has cautiously welcomed the Greek deal, but said: "we need to make sure it works for our country as well as the rest of Europe."

The Chancellor added: "What we really want to see is this turned into a lasting solution. Because this risk from Greece hangs over the whole European economy, including Britain."

Government 'ready to protect Britain' if Greece leaves euro

The Government is ready to protect the British economy from the fall-out from Greece leaving the euro, Chancellor George Osborne has said.

Mr Osborne said the Greek crisis was "one of the biggest external risks to the British economy". The Chancellor told MPs he believed a "no" vote in the referendum called by prime minister Alexis Tsipras for Sunday would effectively be a vote to leave the single currency.

I don't think anyone should underestimate the impact a Greek exit from the euro would have on the European economy and the knock-on effects on us.

The eurozone authorities have made clear that they stand ready to do whatever is necessary to ensure financial stability of the euro area and we welcome that commitment to the currency. Equally the British Government and the Bank of England stand ready to ensure our financial stability in the UK.

– George Osborne

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Osborne: Future governments must run budget surplus

George Osborne is to push forward with plans to ensure future governments can spend no more than they collect in revenue.

George Osborne will deliver his plans in a speech at Mansion House. Credit: PA Wire

The chancellor will use his Mansion House speech later to outline his proposal for a "balanced budget", which limits what future governments can spend when the economy is operating "normally" - when the economy is in good health.

The proposals will be overseen by the independent watchdog, the Office for Budget Responsibility (OBR).

Current rules only require the Government to eradicate the structural deficit by the end of a rolling three-year forecast period.

Mr Osborne will say Britain needs to move towards a "new settlement of responsibility and prosperity" to ensure the country is protected from an "uncertain future".

Mandelson warns Labour has failed on north strategy

Lord Mandelson has blasted Labour for failing to have a strategy to decentralise power from London to northern England.

The former business secretary accused his party of having "language, not policies" on the issue and described the lack of an alternative to Chancellor George Osborne's "Northern Powerhouse" a "huge political mistake".

Lord Mandelson issued a warn over Labour's lack of alternative to the 'Northern Powerhouse'. Credit: Lewis Whyld/PA Wire

Peter Mandelson told the BBC's Sunday Politics North West programme, "We were not radical enough in what we were proposing to decentralise and to devolve away from London and to the regions."

Lord Mandelson said of Osborne, "He got an idea, whatever his motive was, and he is running with it and we let him do so and that was a huge political mistake.

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