George Osborne Wants Further Cuts

George Osborne’s pledge to inflict further austerity has met with a great deal of criticism.
 
Speaking in China, the Chancellor warned that “further reductions in spending” may be coming in his spring Budget.
 
This week the International Monetary Fund (IMF) warned that the Tories are risking economic growth by continuing with low public spending, calls that were echoed by the OECD.
 
In the same week that both the IMF and OECD have criticized the UK Government’s austerity agenda it is amazing that George Osborne talks of even further public spending cuts. Even David Cameron’s mother has complained. 
 
This Chancellor who strangled economic recovery in the last parliament cutting too far and too fast. Now he wants to continue his failed approach at the cost of our economic growth.
 
We need investment in jobs and public services and people particularly the long term unemployed not more cuts. 

From Trading Economics

Since 1998, the United Kingdom has been running consistent trade deficits mainly due to increase in demand of consumer goods, decline in manufacturing, appreciation of the GBP and deterioration in oil and gas production. In 2013, the biggest trade deficits were recorded with Germany, China, and the Netherlands. The biggest trade surpluses were recorded with United States, Ireland and United Arab Emirates.

According to Investopedia

Trade deficit is an economic measure of a negative balance of trade in which a country's imports exceeds its exports. A trade deficit represents an outflow of domestic currency to foreign markets.

Breaking down 'trade deficit'

Economic theory dictates that a trade deficit is not necessarily a bad situation because it often corrects itself over time. However, a deficit has been reported and growing in the United States for example for the past few decades, which has some economists worried. This means that large amounts of the U.S. dollar are being held by foreign nations, which may decide to sell at any time. A large increase in dollar sales can drive the value of the currency down, making it costlier to purchase imports.

The UK’s trade deficit with the European Union in goods has widened to its largest level on record, reflecting sterling's appreciacion against a weakening euro. A cheaper euro has made UK exports less competitive, and reduced demand for them on the continent. reflecting the weakness of the currency bloc and the extension of a quantitative easing scheme by the European Central Bank.

Osborne wants to cut public spending still futher but others argue this policy will make the situation worse.