Business News 20 Mar 2013

Chancellor set to announce £2.5bn cuts in a Budget 'to tackle the economy'

Chancellor George Osborne will announce an additional £2.5bn of Whitehall cuts when he presents the 2013 Budget at 12.30pm today.

The Chancellor will outline the details of the additional 2% departmental spending cuts, to be spread over the next two years, with the money set to be spent on infrastructure projects.

George Osborne has been under increasing pressure to cut taxes and increase spending in a bid to boost the economy, and the latest economic forecasts from the Office for Budget Responsibility are likely to be negative.

However, despite the growing pressure, and the recent loss of the UK's AAA credit rating, the Chancellor has insisted that the Government will stick to its reduction plan.

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