Yorkshire MP claims George Osborne "is in denial"

George Osborne addressing delegates at the Conservative Party conference in Birmingham. Credit: PA Wire

George Osborne has announced plans to cut a further £10 billion from the welfare budget by 2016-2017, on top of the £18 billion in benefit reductions already underway.

Speaking to Conservative Party delegates in Manchester, the Chancellor admitted that the recovery from recession is "taking longer than we hoped, because the damage was greater than we feared".

But he insisted: "We will finish the job we have started."

His speech was soon criticised by the Leeds West MP Rachel Reeves, who claimed the Chancellor was "in denial".