"In a stark warning the shadow chancellor said that unless cuts were made imminently to public spending budgets the financial markets will lose confidence in Britain, with catastrophic consequences. ..Mr Osborne, giving the Mais economic lecture - a rare invitation for a shadow chancellor - said it would “undermine credibility” to try and argue that cuts are not needed and he warned that a country in debt was one that was not free. ...He added: “Over the summer we will work flat out to conduct the detailed departmental Spending Review for the years after 2011 that the current government has simply refused to carry out, and publish that results of that review in the autumn.
“The only possible reason why the Treasury has not already produced a Spending Review is that the Government do not want to spell out the difficult decisions that even their own spending plans imply.“We will not hesitate to take the difficult decisions to get Britain working. We will take targeted steps to reduce some budgets in-year... in order to build credibility and make a start on reducing the deficit.”