EU calls for faster UK deficit cuts - papers

Government plans to cut the budget deficit are not ambitious enough, a European Commission report will say on Wednesday.

The UK is not on course to cut its deficit in line with EU rules by a deadline of 2015, the report warns, the BBC reports. Those rules state deficits must be below 3% of GDP, but the UK's is expected to hit £178bn - 12.6% of GDP - this year. Ministers insist their plans to halve the deficit in four years are less likely to halt the economic recovery. The plans, announced in the pre-Budget report, would see the UK's deficit reduced to 4.7% by 2015 - missing the EU target outlined by finance ministers last year. Read more...