Morning Forex Fundamental: GBP

Morning Forex Fundamental: GBP

'We are slowly but surely fixing our country's economic problems' - Chancellor of the Exchequer, George Osborne

On Friday, Chancellor of the Exchequer, George Osborne, unveiled tough Budget despite fears of another recession. The budget deficit is expected to stand at £121 billion, £120 billion and £108 billion extrapolated for the next two years. The Institute for Fiscal Studies said that another £23 billion of departmental spending cuts are about to come after the next election in 2015, or an extra real terms reduction in spending of 7.6%. The U.K. economy is now expected to expand by 0.6% this year compared with a previous forecast of 1.2%, the Office for Budget Responsibility said.

'We are slowly but surely fixing our country's economic problems,' Osborne said, as he unveiled a series of measure aimed at boosting growth, including far-reaching infrastructure projects, while insisting that Britain is set to escape a new recession.'We have now cut the (inherited) deficit, not by a quarter but by a third,' the chancellor said as he outlined his tax and spending plans for 2013-14.

'Today, the Chancellor joined Twitter,' Labour Party leader Ed Miliband said. 'He could have got it all in 140 characters: Growth down. Borrowing up. Families hit. And millionaires laughing all the way to the bank. Hashtag: downgraded chancellor.'