Chancellor of the Exchequer George Osbourne, detailed his four-year fiscal plan for the United Kingdom yesterday estimated to reduce spending by £81 billion ($127 billion). They are described as the biggest cuts to spending since World War II. Welfare payments will be reduced, including the removal of a child tax credit for couples earning more than £44,000 ($64,449) per year. Government departments face budget cuts and the retirement age for public sector workers will rise to 66 by the year 2020. In addition, Mr. Osbourne is recommending a permanent bank levy. The full details are here.
The U.K. is also facing huge levels of sovereign debt described very memorably by MEP Daniel Hannan. According to Nick Record of the IEA, the U.K.’s public pension obligations are £1 trillion ($1.58 trillion).