LONDON: Britain took the axe to spending on Wednesday, fleshing out plans to slash welfare and eliminate the deficit, but dropped a controversial plan to cut tax credits for the poorest. Finance Minister George Osborne spelled out his proposals for £12 billion of cuts to welfare spending and £20 billion of reductions to public expenditure, while raising £5 billion via a crackdown on tax avoidance. But in a budget update to parliament, Chancellor of the Exchequer Osborne performed a major U-turn to reverse his plans to axe tax credits, which are a state benefit for those on low incomes, following widespread accusations the changes would be harmful.