FTSE treads water as deficit reduction takes longer than planned

<p>The FTSE 100 has not made much ground this morning, after the chancellor admitted reducing the deficit will take longer.</p>

The FTSE 100 is treading water in trading this morning (December 3rd) after George Osborne admitted the government's deficit reduction efforts are going to need more time than originally thought.

Speaking on the Andrew Marr Show on BBC One yesterday morning, the chancellor admitted progress is being made, but to change tack at this juncture would be a "complete disaster".

Shadow chancellor Ed Balls – who was also interviewed by Marr – lambasted his opposite number by claiming his judgement had proved to be "woefully lacking".

The Conservative-Liberal Democrat coalition has set a target of reducing debt as a share of national income by 2015's general election.

Mr Osborne is due to deliver his Autumn Statement this week and said the address would ensure the most affluent tax payers would "pay their fair share" as the country battles to reduce its gaping deficit.

At 10:15 GMT, the FTSE 100 was steady, gaining 0.1 per cent to an index value of 5875.6 points.

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