UK makes spending cuts in tough emergency budget

June 22, 2010 8:04:40 AM PDT
LONDON (AP) - Britain's Treasury chief says he'll cut government borrowing from 10 percent of GDP to 1 percent within 5 years by means of spending cuts, including a freeze on financial support to the Queen. In an emergency budget aimed at repairing the country's economy, George Osborne said Tuesday his program "pays for the past and plans for the future."

He said the government will make 30 billion pounds per year ($44 billion) in cuts to spending by 2014-15.

Osborne said Queen Elizabeth II had accepted a freeze on financial support from government under his plans, and the government will impose a two-year wage freeze on most civil servants.

Britain's Office for Budget Responsibility forecasts government borrowing will total 155 billion pounds ($228 billion) in the current year.