George Osborne will today issue a stark warning that the UK's recovery from recession has yet to be secured, with the economy still too unbalanced despite falls in unemployment, rising house prices and a drop in inflation.
The Chancellor will sound the alarm during a visit to Hong Kong, suggesting the UK cannot rely on consumer spending to get it back in the black.
He will also warn the country still relies too heavily on the lucrative, but potentially risky, financial sector.
Mr Osborne will say: "I'm now the first to say that the recovery is not yet secure and our economy is still too unbalanced. We cannot rely on consumers alone for our economic growth, as we did in previous decades.
"We cannot rely on consumers alone for our economic growth, as we did in previous decades. And we cannot put all our chips on the success of the City Of London, as my predecessors did. Britain is not investing enough. Britain is not exporting enough."
The latest good news on the economic front was delivered yesterday, with UK unemployment falling by 125,000 to 2.34%. House prices are also consistently gaining, while on Tuesday, inflation fell to 1.9% from 2%.
When it came to power in 2010 the Government announced plans to balance the economy. But it has faced accusations it has done little to curb the dominance of the City or tackle high consumer spending.
Mr Osborne's planned speech today appears to admit ministers have failed when he warns they cannot declare "job done". But he will add that only the Conservatives can be trusted to complete the task.
The Chancellor's comments will come as he prepares to deliver his penultimate Budget next month before the 2015 General Election and will be seen as a warning that voters cannot trust Labour to establish a sustainable economic recovery.
Labour accused Mr Osborne of choking off an economic recovery in 2010.
The party also said its plans would see the UK "earn its way" to a meaningful change in the economy.
In a speech to business leaders ahead of a G20 meeting this weekend, Mr Osborne will say: "As well as reasons to be cheerful, there are also reasons to be careful".
He will add: "As a result of this long term economic plan, we are growing. In fact, the UK is now growing faster than any other major European economy.
"Some in Britain might be tempted to say, 'Job done, let's avoid more hard decisions'. That would be a huge mistake. Abandon the plan and we abandon the progress we have made and go back to square one."
Mr Osborne will also say in the speech: There are encouraging signs. Both business investment and exports are forecast to grow. But we can't be passive observers of the forecasts. We need to roll up our sleeves, get to work and make it happen."
Looking ahead to next month, he said: "This is not a Budget where we can rest on our laurels and say, 'Job done'. It is a Budget where we must confront our problems and deal with some hard truths."
This would involve making the UK more of an export nation, he said.
Since 2009 exports have increased to China by 130%; Russia by 117%; India by 79%; and to Brazil by just over half.
But Mr Osborne will say more can be done and will add that "wherever you are, you can't help but see 'Made in Britain'. That's the Budget I'm going to deliver."
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