UK ponders another £16bn public cut

Chief Secretary to the Treasury Danny Alexander, who is to address the Institute for Fiscal Studies later on Monday, is to warn his audience that the public sector has to further tighten the belts to prevent the British economy from collapse.

“These new controls are not just a tweak to the Whitehall machine,” Alexander will say according to published excerpts of his speech.

Alexander will also warn that the British economy is now in a clear “mess” that should happen “never again.”

He will call on the government departments to save five percent of their budgets to be able to cope if the government announced another wave of public sector cuts.

The decision comes after the Treasury decided to cut its national buffer fund by £1.2 billion to £2.8 billion.

Alexander’s announcement will come as a great shock to the British public especially after the government announced the crisis-hit British economy will contribute another £10 billion to the International Monetary Fund to help the Euro zone out of its current financial mess.

Chancellor George Osborne’s decision to commit the money to IMF bought him the criticism of media mogul Rupert Murdoch who said London “must be mad” to make the commitment at a time when “not even US or China [are] chipping in.”

AMR/MA/HE

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