The chancellor is set to step aside if the Conservatives win a general election, despite his party’s election victory.
The chancellor will step down if Labour wins the next election, the Treasury confirmed on Thursday.
The move was the result of a review into the UK’s finances by a parliamentary committee, which was commissioned by Chancellor Philip Hammond and approved by the cabinet.
Mr Osborne will remain on as chancellor, and will continue to be an MP.
The Treasury confirmed that the review, which has not yet been published, found that the UK was on course to lose a third of its GDP in 2020, and that the cost of the economy would exceed 2 per cent of gross domestic product by 2020.
“We will continue working to improve our finances and ensure the country remains competitive and resilient. “
“As the UK enters the next phase of its recovery, we will work to ensure that our economy remains strong and our debt-to-GDP ratio stays low.” “
The chancellor has been at the centre of the UK financial crisis, which began when the Tories won power in 2010. “
As the UK enters the next phase of its recovery, we will work to ensure that our economy remains strong and our debt-to-GDP ratio stays low.”
The chancellor has been at the centre of the UK financial crisis, which began when the Tories won power in 2010.
Mr Hammond was forced to resign amid revelations about the size of the deficit, which reached almost £50bn in 2011.
The UK’s debt-servicing costs now stand at nearly £3.5tn, and the country has a budget deficit of £6.7bn, according to the Office for National Statistics.
Mr Trump has vowed to bring down the deficit.
“If we’re not in this position, it’s not a good outcome,” Mr Trump told the New York Times last week.
We have debt, we have deficit, and we have to deal with it. “
Our country has been devastated.
It’s going in a big way, because it’s a total mess.” “
It’s going to be a very big deal.
It’s going in a big way, because it’s a total mess.”
Mr Trump said the UK had become a “tax haven”, and that he would make the country a “sanctuary” for illegal immigrants.
He also promised to close the US’ borders to refugees and migrants from Syria and elsewhere.
“And we’re going to make America great again,” he said.
“You’ve been waiting for this.
We’re going in, we’re making America great.”
The UK is one of only two G7 countries without a government debt limit, the other being the United States.
The EU’s debt crisis has seen the bloc’s debt reach more than €50 trillion, which is nearly a fifth of GDP.
The United States, with a population of 1.3 billion, has the second-highest debt burden in the world.
The IMF has warned that the economic situation is “unbearable”, and has warned the UK is not in a position to pay back its debts.
The BBC’s John Simpson in Washington says the UK has the potential to be the third-largest economy in the G7 group.
“At this stage of the game, we are the second largest economy in Europe, behind Germany,” said David Cameron, the Conservative leader.
“There’s no doubt we’ve got a long way to go.”