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Govt 'committed to debt targets'

Govt 'committed to debt targets'
Downing Street has said Government remains committed to its debt targets and timescale despite worsening borrowing figures.

George Osborne is reportedly prepared to drop his public sector debt target rather than risk more spending cuts before the next general election.

A report by the Office for Budget Responsibility is expected to show an increase in Government spending - throwing the Chancellor off course to meet the Coalition's pledge of ensuring public sector net debt as a proportion of national income is falling between 2014-15 and 2015-16.

The Prime Minister's Official Spokesman said today: "We have always made very clear that deficit reduction and growth are not alternatives. Taking action to reduce the deficit is a vital part of our strategy to protect the economy and get it growing again."

He added that there are "two fiscal targets, one of which is to balance the structurally adjusted current budget by the end of a rolling five-year forecast period, the other is that public sector net debt as a percentage of GDP should be falling by a fixed date of 2015/2016".

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