George Osborne has warned of further cuts over the coming year, which he described as a "year of hard truths".

He said that £25 billion in savings would need to be achieved in order to balance UK spending, saying that the UK was currently: "borrowing around £100bn a year - and paying half that money a year in interest just to service our debts".

Mr Osborne suggested that the cuts would come from reductions in welfare spending, including cutting housing benefits for under-25s, and restricting housing for those with an income of over £65,000 a year.

The announcement comes as the Chancellor seeks to cement the government’s economic strategy in preparation of the next general election.

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