David Cameron will introduce today 6 billion pounds of spending reduction in an introductory step to cut the deficit that reached 11.7% of GDP last year, the largest deficit among G7 countries. A brief of the plan is going to be announced at 10 a.m. today.
Monday May 24 is the last day for departments to determine their savings and give them to George Osborne who will hold an emergency budget on June 22. Spokesman of the new coalition government said the spending cuts are expected to strong and decisive.
It is worth noting, the deficit reached 10 billion pounds in April, the largest since compiling data for the first time in 1993, while the pound slipped more than 11.5% since December on concerns the government will not be able to shave the huge deficit which may jeopardize recovery.