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Govt: Economy 'could be worse'

The Chancellor George Osborne has told ITV's Daybreak that the country's economic problems "could be a lot worse", referring to the situation in Cyprus, as he defended his Budget plans to kickstart the recovery.

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Osborne 'straight with the country about problems'

Chancellor George Osborne speaks to ITV's Daybreak the morning after he delivered his Budget.

Chancellor George Osborne defended his Budget on ITV's Daybreak saying he "was very straight with the country about the problems we face".

He added: "I lay down a challenge to myself and to this country which is we have got to confront those problems but we are on the right track, it is a hard road but we are getting there."

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