"We are getting on top of the deficit," the Chancellor told the BBC's Andrew Marr Show. “They are difficult times for the British economy; it’s a difficult time for the world economy, but our economy is healing. We have to do more and we have to do it faster."
Mr Osborne's original goal of eliminating most of the UK's deficit before the 2015 election has already slipped to 2017, and two ratings agencies have put Britain's prized triple-A debt rating on a negative outlook. However, the deficit has been cut to 8.2pc of GDP in the 2011/12 fiscal year from its peak of 11.2pc just before the Tories came to power.
"Britain’s economic problems are deep rooted, built up over many years,” Mr Osborne added. “If there was a quick fix, or an easy road, I would be the first on it. There is no alternative easy road."
The Treasury is also planning to create a public-sponsored bank to lend to small businesses, Mr Osborne said.
“The weakness in our banking system is one of the biggest problems we’ve got. We do need to actively consider now, and actively work on as we are in the Treasury, a small business bank sponsored by the Government. Small businesses are the innocent victims of the financial crash.”
Mr Osborne's views come as David Cameron vowed to end the "dithering" and "paralysis" that holds back Britain's economy.
"A key part of recovery is building the houses our people need, but a familiar cry goes up: ‘Yes, we want more housing; but no to every development – and not in my back yard'," he wrote in the Mail on Sunday.
"The nations we’re competing against don’t stand for this kind of paralysis and neither must we. Frankly, I am frustrated by the hoops you have to jump through to get anything done – and I come back to Parliament more determined than ever to cut through the dither that holds this country back."
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