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More austerity for U.K. despite recovery
By Virginia Harrison @vharrisoncnn January 6, 2014: 10:31 AM ET


LONDON (CNNMoney)
Britain faces fresh government spending cuts worth $41 billion, signaling the scars of the financial crisis in one of Europe's strongest economies have far from healed.

In a speech Monday, Chancellor George Osborne said £25 billion ($40.9 billion) would be cut over two years through to early 2018, equivalent to nearly 2% of government spending over that period.

Faster growth is not generating enough revenue to allow the U.K. to start reducing its debt mountain, and the government doesn't want to raise taxes further.

Around half of the cuts will hit welfare programs, putting more strain on some of the country's most vulnerable residents.

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