George Osborne says he’s started Tory cuts because it will make the next ones 'smoother'

Chancellor has made an early start on his plan to eliminate the deficit by 2018 but the road ahead can be described as anything but smooth.

Conservative spending cuts have already begun, George Osborne has said as he told unprotected Whitehall departments to start cutting back now to make the next five years of austerity "smoother".

The Chancellor has pledged to eliminate the UK's budget deficit by 2018 and to turn it into a surplus the following year. But with the deficit forecast to be £75 billion in 2015/16, Mr Osborne faces a difficult challenge and he has wasted no time in wielding the axe, even though the budgets for this year have already been outlined.

"When it comes to saving money, we all know that the more you can do early, the smoother the ride," he told the Confederation of British Industry last night.

“And without fixing the public finances so our country lives within its means, there can be no economic security for businesses or working people.”

But the road ahead is anything but 'smooth' for those waiting to hear how Mr Osborne will find £12 billion of welfare cuts and an additional £13 billion in budget cuts from unprotected departments such as transport, defence, justice and the home office.

Mr Osborne plans to save another £5 billion from cracking down on tax avoidance, while he wants to make a profit from publicly-owned assets by selling off shares in Lloyds and Eurostar and has created a government-owned company, UK Government Investments (UKGI), to oversee the sale.