Chancellor Philip Hammond has confirmed he will "reset" the Government's fiscal policies in next month's Autumn Statement, with a new "pragmatic" plan that allows greater scope for investment to boost the economy.
A goal that the former chancellor himself acknowledged was unlikely to be attainable following the referendum vote for Brexit.
But Mr Hammond will use a high-profile speech to the Conservative annual conference in Birmingham to signal that this does not mean an end to the age of austerity inaugurated by Mr Osborne in 2010.
The new plan will continue the "task of fiscal consolidation" begun under his predecessor and maintain controls on public spending in order to ensure that Britain lives within its means, Mr Hammond will say.
The Chancellor is set to say: "The fiscal policies that George Osborne set out were the right ones for that time. But when times change, we must change with them.
"So we will no longer target a surplus at the end of this Parliament.
"But make no mistake. The task of fiscal consolidation must continue. And it must happen within the context of a clear, credible fiscal framework that will anchor expectations, control day-to-day public spending, deliver value for money and get us back living within our means."
"At the Autumn Statement in November, I will set out our plan to deliver long-term fiscal sustainability, while responding to the consequences of uncertainty in the short-term and recognising the need for investment to build an economy that works for everyone.
"A new plan for the new circumstances Britain faces."
UK news in pictures
UK news in pictures
1/17 22 June 2017
Cosplay fans (L-R) George Massingham, Abbey Forbes and Karolina Goralik travel by tube dressed in Harry Potter themed costumes, after a visit to one the literary franchise's movie filming locations at Leadenhall Market in London, Britain
2/17 22 June 2017
Racegoers cheer on their horse on Ladies Day at the Royal Ascot horse racing meet, in Ascot, west of London
3/17 21 June 2017
A reveller walks among the tipi tents at the Glastonbury Festival of Music and Performing Arts on Worthy Farm near the village of Pilton in Somerset, South West England
4/17 20 June 2017
A police officer lays some flowers passed over by a member of the public, close to Finsbury Park Mosque in north London, after one man died and eight people were taken to hospital and a person arrested after a rental van struck pedestrian
The Borough Market bell is seen in Borough Market in central London following its re-opening after the June 3 terror attack
Two women embrace in Borough Market, which officially re-opens today following the recent attack, in central London
Mayor of London Sadiq Khan attends the re-opening of Borough market in central London following the June 3 terror attack
People walk through Borough Market in central London following its re-opening after the June 3 terror attack
News Corp CEO Rupert Murdoch, with one of his daughters, visit Borough Market, which officially re-opened today following the recent attack
A woman reacts in front of a wall of messages in Borough Market, which officially re-opened today following the recent attack, in central London
Vivenne Westwood walks the runway at the Vivenne Westwood show during the London Fashion Week Men's June 2017 collections
Millwall fan and London Bridge hero Roy Larner on 'Good Morning Britain'
Richard Arnold, Roy Larner, Piers Morgan and Susanna Reid on 'Good Morning Britain'
14/17 11 June 2017
England players celebrate after defeating Venezuela 1-0 to win the final of the FIFA U-20 World Cup Korea 2017 at Suwon World Cup Stadium in Suwon, South Korea
15/17 11 June 2017
England players celebrate with the trophy after the final match of the FIFA U-20 World Cup 2017 between Venezuela and England at Suwon World Cup Stadium in Suwon, South Korea
16/17 11 June 2017
Great Britain's Alistair Brownlee celebrates winning the Elite Men Columbia Threadneedle World Triathlon Leeds
Danny Lawson/PA Wire
17/17 11 June 2017
Two men drink beer outside the Southwark Tavern which reopened for business today next to an entrance to Borough Market which remains closed in London
Mr Hammond will say: "A fundamental part of maintaining our global competitiveness is getting our public finances back in order. The deficit remains unsustainable.
"Piling up debt for our children and our grandchildren to pay off is not only unsustainable, it's not fair.
"The British people elected us on a promise to restore fiscal discipline. And that is exactly what we are going to do.
"But we will do it in a pragmatic way that reflects the new circumstances we face."
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