George Osborne: 'This year, the economy is mission critical'
George Osborne has warned the UK economy faces a "dangerous cocktail" of threats and will insist there can be no "let up" in the squeeze on spending.
In a speech in Cardiff, the Chancellor accused political opponents of a "creeping complacency" about the prospects for recovery, citing turmoil in the Middle East, an economic slowdown in China, plunging commodity prices and a risk of stagnation.
ITV News' deputy political editor Chris Ship reports:
"I worry about a creeping complacency in the national debate about our economy. A sense that the hard work at home is complete and that we're immune from the risks abroad. A sense that we can let up and the good economic news will just keep rolling in."
Mr Osborne said he was issuing " a very clear warning" to the politicians "peddling those views".
The global threats
Mr Osborne also pointed to slower growth in China, which saw trading suspended on Thursday for a second time this week after share prices plunged, the recessions in Brazil and Russia, the drop in commodity prices which have led to a drop in the cost of crude oil and political developments in the Middle East as potential hazards to the UK.
"That is good for consumers and business customers here in Britain, bad news for the oil and gas industry, worrying for the creditors who have lent to it, and a massive problem for the countries that depend on it.
"Meanwhile the political developments in the Middle East, with Saudi Arabia and Iran, concern us all," Mr Osborne said.
He also warned that people may think its 'job done' with the performance of the British economy.
The Chancellor concluded by warning that all of the progress made could "still easily be reversed", adding "that's why we've got to fix the roof while the sun is shining".
Analysis from ITV News Economics Editor Richard Edgar