George Osborne: Britain's got to live within it's means

Chancellor George Osborne has told Daybreak that "Britain's got to live within its means" because it "can't afford the current size of the Government".

Speaking about pay reforms for public sector workers, he said: "We've got to end these automatic pay rises, not the annual pay rises but the automatic moving up of the pay grades every single year.

Chancellor George Osborne: 'Britain's got to live within its means' Credit: Daybreak

"Again that's not fair to many of those on the public sector who aren't on those pay increases and people in the private sector who are again paying for it."

He added: "There will be pay rises, they just shouldn't have these automatic increases up the pay grades."

The country can't afford the current side of the Government, it can't afford to do all these things and at the same time it is borrowing huge sums of money and we've got to deal with that as a country."