Osborne budget bill to tackle deficit

British Chancellor George Osborne has unveiled the coalition government's 2010 emergency budget, seeking to tackle the country's deficit by 2015-16.



The new budget, presented by Osborne to the House of Commons on Tuesday, fulfilled the Conservatives' promise of delivering a budget within 50 days of taking office.

Under the decision, the government will put a two-year pay freeze for public servants making over 21,000 pounds while raising VAT sales tax to 20 percent.

The British chancellor's plan which would slash spending by £6.2 seeks to bring down the UK's 155-billion-pound deficit within five years.

During his Tuesday address, Osborne argued that “The failures of the banks imposed a huge cost on the rest of society" adding that they must “make a more appropriate contribution, which reflects the many risks they generate."

The emergency budget announcement has drawn wide criticism by unions who have expressed concern about the resulting large-scale job loss in the public sector and the threat it would pose to the UK's slow economic recovery.

Among the critics of plan is acting Labour leader Harriet Harman, who said the coalition's plan would only damage economic growth, making it harder to cut the country's deficit.

He also attacked the Liberal Democrats for being part of a coalition government that has introduced measures they campaigned against -- such as a rise in VAT.

Meanwhile, Osborne defended the newly-introduced deficit plan, saying "My budget is tough but it will be fair. This is an unavoidable budget because of the mess we have to clear up. So the coalition government will take responsibility for balancing Britain's books within five years."