UK's Treasury chief says austerity isn't over

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British Treasury chief George Osborne has delivered the bad news that the government's austerity will continue even though the economy is growing faster than predicted.

Osborne told the House of Commons in his budget statement Wednesday that higher growth would not be enough to heal the country's public finances.

Citing independent figures from the Office of Budget Responsibility, he said the U.K. economy should grow 2.7 percent this year. That's up on the 2.4 percent prediction last autumn and makes the U.K. the fastest-growing among the top 7 industrial economies.

He says that he must "fix the roof when the sun is shining" and that further spending cuts will be needed through the next parliamentary term. A general election is scheduled for the spring of 2015.

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