delaying his debt target.
British media reported on Sunday he was poised to announce plans to cap the pension benefits of high earners, alongside a reining in of the welfare budget, which could impact financial services groups.
"It's going to be a relatively dour message from Osborne ... It'll be a reminder of the tough conditions for Britain as the austerity measures bite. For that reason we would favour being exposed to U.S. markets, and high-beta Europeans rather that the UK for the time being," Henk Potts, market strategist at Barclays Wealth said.