UK's Osborne says growth alone won't fix deficit

Reuters

LONDON, Oct 22 (Reuters) - An improving economy will not beenough on its own to rein in Britain's still wide budget deficitand more action to cut costs is needed, finance minister GeorgeOsborne said on Tuesday.

"An improving economic situation in the UK does notautomatically lead to a windfall for the public finances becausewe shouldn't assume that a structural deficit is solved by animprovement in GDP," Osborne told a Thomson Reuters Newsmakerevent in London.

"It's called a structural deficit for a reason," he said.

Earlier on Tuesday, data showed Britain's public financesimproved in September, helped by higher tax revenues as theeconomy emerged from a long period of stagnation after thefinancial crisis.

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