George Osborne's New Year speech promises more austerity

In 2014, George Osborne highlighted the UK's economic challenges, emphasizing the need for rebalancing the economy by boosting industrial output rather than relying on consumer spending. Despite some positive signs, significant issues remain, prompting further government spending cuts, particularly in welfare. These cuts are expected to impact local governments, leading to more austerity measures. The overall message is to prepare for continued economic hardship with the hope of eventual recovery.

What were the underlying problems in the UK economy mentioned in the text?

What signs of improvement in British industry were mentioned?

What impact did the proposed cuts to the welfare budget have on local government?

What does the phrase 'a smaller state' imply in the context of the government's approach?

How did George Osborne's message reflect the economic situation in 2014?