Chancellor of the Exchequer George Osborne on Wednesday said the government will forge ahead with its ambitious plan to cut borrowing, even though economic growth is likely to be slower than was expected when he first embarked on that course.

In his second budget since the coalition government took office last May, Osborne told parliament that because the government had set a "credible, comprehensive plan" to deal with the deficit, he would not have to inflict further pain on squeezed British households.