The European Commission will tomorrow tell the UK to cut its deficit to below the EU limit of 3 pct of GDP by March 2007, according a document. "The UK authorities should put an end to the present excessive deficit situation as soon as possible and by the financial year 2006-7 at the latest," said the commission proposal expected to be approved tomorrow at its first meeting of the year. The commission calls on the UK to take action by July 24 to get its deficit below the stability and growth pact's 3 pct limit. But the UK deficit is now on course to breach 3 pct for four years in a row. The UK posted a deficit of 3.2 pct in the financial years to March 2004 and March 2005. The deficit is forecast to rise to 3.4 pct in 2005-6, and to remain above 3 pct in 2006-7. Even though the UK is outside the euro zone, it is bound by the pact's deficit limit. However, unlike euro zone countries, it cannot be fined.