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Detroit's city workers and retirees overwhelmingly agreed to accept the city's debt adjustment plan, according to results filed late Monday, potentially clearing the way for the struggling city to exit bankruptcy in the next few months. Documents filed in U.S. Bankruptcy Court show the city's current and retired police and fire employees, along with other active and retired city workers, will accept pension reductions to help adjust $18 billion in debt in the largest-ever U.S. municipal bankruptcy case. "The voting shows strong support for the city's plan to adjust its debts and for the investment necessary to provide essential services and put Detroit on secure financial footing,” said Detroit Emergency Manager Kevyn Orr in a statement. Detroit filed for bankruptcy in July 2013 after decades of dwindling population and a declining manufacturing base left the city of approximately 688,000 unable to pay its bills.
By David Milliken and William Schomberg LONDON (Reuters) - Britain's public finances showed a bigger than expected deficit in June, continuing a weak start to the tax year and leaving Chancellor George Osborne with a lot of catching up to do to meet his fiscal goals. The government failed to reduce public borrowing during the first three months of the 2014/15 fiscal year, possibly limiting its ability to offer any tax cuts or other voter-friendly surprises ahead of a national election in May next year. Deficit reduction is the central economic policy of the Conservative-led coalition, which came to power in May 2010 when Britain's budget deficit was 11 percent of annual economic output - one of the highest for a major economy. Britain's government is aiming to get the deficit down to 5.5 percent of gross domestic product in the 2014/15 fiscal year, from 6.5 percent of GDP in 2013/14, which will require a near 10 percent reduction in borrowing in cash terms.