Finance minister George Osborne said on Monday that Britain was out of the "financial danger zone," but needed to stick to his plans to cut the budget deficit.

"What we've done over the last 5 months is move Britain out of the financial danger zone ... and given the country a plan that the rest of the world has confidence in," he told BBC Radio 4.

The government will announce plans to cut departmental spending by 25 percent on Oct 20 to try to virtually eliminate the deficit over the course of its five-year parliamentary term.