Osborne: UK faces 'hard truths' about spending cuts in 2014

Chancellor George Osborne has warned Britain still faces "painful cuts" in its efforts to achieve a stable economy.

In a speech to be given in Birmingham, the Chancellor will say the UK needs to face up to 'hard truths' about the state of the economy, despite recent encouraging data.  He will argue more austerity measures to cut spending are needed to reduce the tax burden on workers and firms. The country is borrowing around £100bn per year, although Osborne (pictured) will state the deficit is down by a third. "We have got to make more cuts. That is why 2014 is the year of hard truths - the year when Britain faces a choice. "Do we say 'the worst is over, back we go to our bad habits of borr...