Osborne's stark warning on economy

Britain's economic "age of irresponsibility is over", George Osborne has warned the public.

In a speech to the Birmingham Chamber of Commerce on Friday, the shadow chancellor was set to offer a bleak message on the state of the economy.

And he was also expected to say that there should be a rebalancing of corporation tax so that firms have less incentive to borrow.

Osborne was expected to present his comments as an example of the Conservative Party's readiness to "tell it like it is".

The shadow chancellor was set to argue that only starting with an "honest assessment" of Britain's problems would allow them to be resolved.

"Our banking system is not separate from our economy, it is a reflection of it," he was expected to say.

"Our banks hold a mirror up to the worst excesses of our society.

"And the unsustainable debts in our banks are a reflection of unsustainable debts in our households, our companies and our government."

Osborne was also calling for an end to Britain's "economy built on debt".

"It means telling people that they can't rely on massive increases in house prices to fund their retirement, and that they will have to save for a deposit to buy their own home," he said.

"It means pointing out that increasing profits through ever higher debts is not a sustainable way to build a business.

"The 'money for nothing' society has to end. The age of irresponsibility is over."

Osborne was also set to deliver a bleak message on the actions needed to get the economy back on track.

"The truth is that Britain is going to have to work hard and save hard to get out of this hole," he said.

"The Conservatives are ready to tell people these home truths, and the country is ready to hear them."