Austerity

U.K. Treasury Chief Announces Massive Cuts

Balancing the budget is going to hurt. British Treasury chief George Osborne announced that the U.K. government will make the largest cuts to public spending since World War II. As part of a five-year austerity plan, Osborne has ordered £83 billion—$130 billion—in spending cuts. The cuts, which will be combined with tax increases, will result in the loss of as many as 500,000 public-sector jobs and drastic reductions in welfare payments. Osborne hopes for a balanced economy by 2015. “It is a hard road, but it leads to a better future,” said Osborne.