'More difficult decisions to come' says Osborne

Chancellor George Osborne has said the economic recovery is under way but more difficult decisions need to be made to keep the deficit down.

Speaking ahead of the budget announcement next week, Osborne outlined plans for a welfare spending cap which he said would help to reduce the level of spending cuts on other government departments.

He also announced a scheme to create a "garden city" at Ebbfleets by building 15,000 new homes and said the government would be extending its Help to Buy scheme to the end of the decade.

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