British govt says deficit reduction most urgent issue

LONDON: Britain's new coalition government agreed Wednesday that cutting the country's record deficit was "the most urgent issue" it faced, according to a joint accord.

"The parties agree that deficit reduction and continuing to ensure economic recovery is the most urgent issue facing Britain," the agreement between the Conservatives and the Liberal Democrats said.

It said there would need to be "a significantly accelerated reduction in the structural deficit" over the next five years "with the main burden of deficit reduction borne by reduced spending rather than increased taxes".

The government's plans for cutting the deficit will be set out in an emergency budget within 50 days, which will include forecasts of growth and borrowing made by an independent body.

The deal provides for "modest cuts of six billion pounds" (nine billion dollars, seven billion euros) to non-front line services can be made within the next financial year.