POSTED: Thursday, December 6, 2012 - 9:00am
UPDATED: Thursday, December 6, 2012 - 9:04am
NBC News — Spending cuts and tax increases will continue for people in the U.K. until 2018. That's three years later than U.K. Chancellor of the Exchequer George Osborne initially planned. Osborne said wednesday, austerity measures necessary to stabilize and reduce government debt would continue. New forecasts from the office for budget responsibility indicated weaker economic growth in coming years than previously expected. That will mean lower tax revenue and a higher budget deficit than expected as well.
Parliament jeered at Osborne during his comments. The opposition Labor Party says austerity has failed and has held back Britain's recovery. New York University professor and economist Nouriel Roubini warned of a Eurozone break up if economic growth wasn't restored. Roubini made his comments wednesday at a conference in Berlin organized by Germany's largest trade union. He also warned that the U.S. was facing its own fiscal difficulties.