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    UK not borrowing more money in March budget - Osborne

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    LONDON (Reuters) - Chancellor George Osborne, under pressure to find ways to boost a stagnant economy, said on Sunday borrowing more money to lift spending or cut taxes was off the agenda for the budget statement he will deliver in March.

    "Any tax cut would have to be paid for...there would have to be a tax rise somewhere else or a spending reduction... What we are not going to do in this budget is borrow more money to either increase spending or cut taxes," Osborne told Sky News.

    "We can't have any deficit-financed measures in that sense because getting the budget deficit down, which is now happening, is an incredibly important part of keeping interest rates low in Britain, keeping confidence in the British economy, keeping economic stability in Britain," he said in an interview from Mexico City where he is taking part in a meeting of the Group of 20 countries.

    The Conservative and Liberal Democrat coalition has made erasing the country's budget deficit - which was at a peak of 11 percent when they came to power in 2010 - a cornerstone of their economic policy.

    But Osborne has been facing calls from business and across the political spectrum for tax cuts to stimulate growth after the sluggish recovery from a 2008-2009 economic slump.

    The Liberal Democrats want him to raise the threshold at which people start paying taxes, while there are demands from within his own Conservative party to cut business taxes.

    The Labour party has urged him to make a temporary cut in value-added tax, a levy on purchases.

    The biggest business lobby group CBI has called on the government to consider changes to the tax system to encourage investment in infrastructure.

    Data last week showed that the government was ahead of schedule in its programme to cut borrowing.

    But a choppy growth outlook for the rest of this year is likely to make it harder for Osborne to reduce borrowing further out, leaving little leeway for giveaways in the March 21 budget. ($1 = 0.6306 British pounds)

    (Reporting by Olesya Dmitracova and Tim Castle; Editing by Elaine Hardcastle)

     

    13 comments

    • Wacker  •  2 months ago
      there comes a time when we can not and should not borrow money and that is now. .
    • Ireland's Eye  •  London, England  •  2 months ago
      If the British stopped paying £47million a day into Europe, then George could afford to reduce taxes and stimulate the British economy, especially in the South East and Midlands.
      • Jac 2 months ago
        Why not the South-West as well?
    • ABC  •  2 months ago
      Most people are calling for tax cuts. All main political parties (except thre Green party), the CBI, etc.
      The difference of opinion is, how the tax cuts should be paid for.
      • Martin Davies 2 months ago
        Tax cuts don't help the unemployed or the low paid directly - but is good for higher paid people. Be interesting to see whats in the budget, always a good read. Perhaps if we taxed councils it would be a start. VAT perhaps.
    • Johnny Randal  •  Hounslow, England  •  2 months ago
      reduce spending........Cut...Cut...Cut..........Cut all quanggo..quanggo will be cut and all waste...cut..cut...cut....
    • Henry Goodridge  •  2 months ago
      Osborne focuses on the actual bank bailouts which occurred at the height of the financial crisis.What about the fact that the banks are effectively now being recapitalised at the tax payers expense?.The government debt continues to rise because the policy remains to molly coddle debtors in the UK and to punish the financially stable and savers.Great store is being put on the fact that the annual rate of increase of government debt is decreasing but the fact remains that the current rate of increase is between 7 and 8 % of UK GDP.This is unacceptable and the government needs to accelerate its cuts of the bloated government spending in order to get a balance at the earliest possible time.
    • Johnny Randal  •  Hounslow, England  •  2 months ago
      Cut all the red tape that Labour Created...Cut all the quanggo and waste.......cut...cut..cut....
    • David  •  2 months ago
      A cut in VAT would be a great idea for importers. People would have more money in their pocket to spend on imported electrical goods, imported clothes, imported cars and so on. On paper it will increase the UK GDP, but most jobs will be created in the far east. It's a typical Labour attempt to bribe the poor of the country with borrowed money, but the jobs will not be created in the UK. Europe and the UK has been brought to its knees by corrupt politicians borrowing money and saying 'your better off under Labour' (until the money runs out).
    • Johnny Randal  •  Hounslow, England  •  2 months ago
      It is better than Labour Government borrow and spend for the quanggo.......That is the reason why we have massive debts and deficits...Labours Party and LaBOUR gOVERNMENT FAULT LIKE gORDON bROWN POLICY BORROW MORE AND SPEND MORE AND IT WAS CONTINUED BY ALISTER DARLING...SPEND.BORROW MORE,...SPEND AND BORROW MORE......AND CREATE QUANGGO...QUANGGO...THAT IS WAHT LABOUR CREATED......QUANGGO EMPLOYEE AND GHOST EMPLOYEE AND ALL WASTE.....
    • John  •  London, England  •  2 months ago
      How to have more money without borrowing or more taxation. 1/ Stop foreign aid to developing countries who are using the money for weaponry and not to help their poor. 2/ Come out of the EEC and run our own affairs.3/ No fuel allowances for pensioners with incomes over £30000, no child benefits for third child or for those earning ove £50000 4/ Stop all interventions in foreign countries problems, we are not policemen for the world any more , just a small impoverished country. The days of empire have long gone.
    • ROBBIE34  •  Brighton, England  •  2 months ago
      people on minimum wage should not be paying income tax
    • brian l  •  St Albans, England  •  2 months ago
      i wounder why this goverment has not given the taliban eneny aid
    • Johnny Randal  •  Hounslow, England  •  2 months ago
      it is the fault of gordon brown prudent brown borrow more and spend more than.......he is the chancellor and the prime minsiter who like borrow more and spend more...tax all business and borrow more.....he is the prime minister by stealt who make great britain poor and in debts with the help of alister darling.........their legacy......the Lanour Government make Britain Bankcrupt........Now Obsbourne cutting all the quanggo and all the mess and all unnecessary expenses to make it right.........Now we are on the right direction........Yes it is painful but in the right path......
    • Lickity Split  •  London, England  •  2 months ago
      Here's an idea instead of paying for anti HIV drugs for immigrants entering the country, how about we stop them entering the country???