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George Osborne 'finds' £12bn of welfare cuts

Chancellor George Osborne said he has "found" the £12 billion of benefit cuts promised in the Tory election manifesto.

Measures expected to be announced in Wednesday's budget include cutting the amount of social housing cash available to council and housing association tenants, slashing the benefits cap to £23,000 a year in London and reducing funding to the BBC by £650 million a year.

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Benefit cap outside London will be lower than £23,000

The Chancellor will reveal his budget on Wednesday. Credit: PA

George Osborne has announced the benefit cap outside the capital will be lower than £23,000.

In an interview with BBC's Andrew Marr, he said: "It's not fair that people outside of work can earn more than those in work."

The Tories announced they would be capping London benefits at £23,000 during their election campaign.

Asked how much lower it would be for the rest of the country, the Chancellor said it would be revealed in the budget on Wednesday.

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