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Spending review: George Osborne 'secures deals' on 30% cuts | Spending review: George Osborne 'secures deals' on 30% cuts |
(35 minutes later) | |
Four government departments have provisionally agreed to cut their spending by an average of 30% over the next four years, Chancellor George Osborne is to announce later. | Four government departments have provisionally agreed to cut their spending by an average of 30% over the next four years, Chancellor George Osborne is to announce later. |
The transport, local government and environment departments, plus the Treasury, have all agreed deals ahead of the spending review on 25 November. | The transport, local government and environment departments, plus the Treasury, have all agreed deals ahead of the spending review on 25 November. |
The cuts will help the public finances back into surplus, he will say. | The cuts will help the public finances back into surplus, he will say. |
A Treasury source told BBC News the agreements were "really good progress". | A Treasury source told BBC News the agreements were "really good progress". |
Spending review: Nine new prisons to replace old jails | Spending review: Nine new prisons to replace old jails |
'Confidence risk' | 'Confidence risk' |
The departments will be expected to cut day-to-day spending over the next four years through a combination of efficiency savings and closing low value programmes. | The departments will be expected to cut day-to-day spending over the next four years through a combination of efficiency savings and closing low value programmes. |
Negotiations are continuing with others, the source added. | |
The chancellor has asked most parts of the government to come up with savings of between 25% and 40% by the end of the current parliament. | |
A number of departments, including health and overseas aid, have had their budgets protected. | A number of departments, including health and overseas aid, have had their budgets protected. |
In a speech later in London, Mr Osborne will warn that if the government does not control spending there is a risk of loss of confidence in the economy. | In a speech later in London, Mr Osborne will warn that if the government does not control spending there is a risk of loss of confidence in the economy. |
"The deficit could bring our country down," he will say. "While debt is high, our economic security is in danger. | "The deficit could bring our country down," he will say. "While debt is high, our economic security is in danger. |
"No-one knows what the next economic crisis to hit our world will be, or when it will come. But we know we haven't abolished boom and bust." | "No-one knows what the next economic crisis to hit our world will be, or when it will come. But we know we haven't abolished boom and bust." |
'Resisting attempts' | 'Resisting attempts' |
One department which has not yet reached an agreement is the Department for Work and Pensions, from where Mr Osborne is seeking £12bn in welfare savings. | One department which has not yet reached an agreement is the Department for Work and Pensions, from where Mr Osborne is seeking £12bn in welfare savings. |
The chancellor is currently seeking new ways to save £4bn after the House of Lords rejected legislation paving the way for working tax credit cuts. | The chancellor is currently seeking new ways to save £4bn after the House of Lords rejected legislation paving the way for working tax credit cuts. |
But Work and Pensions Secretary Iain Duncan Smith is strongly resisting attempts by the Treasury to make Universal Credit less generous, the BBC understands. | But Work and Pensions Secretary Iain Duncan Smith is strongly resisting attempts by the Treasury to make Universal Credit less generous, the BBC understands. |
Universal Credit is a new type of benefit designed to support people who are on a low income or out of work. | Universal Credit is a new type of benefit designed to support people who are on a low income or out of work. |
It is replacing six existing benefits - income-based jobseeker's allowance, income-related employment and support allowance, income support, child tax credit, working tax credit, and housing benefit. | It is replacing six existing benefits - income-based jobseeker's allowance, income-related employment and support allowance, income support, child tax credit, working tax credit, and housing benefit. |
Resigning matter? | Resigning matter? |
But Treasury officials are thought to be considering increasing the penalties faced by claimants who take extra work. | But Treasury officials are thought to be considering increasing the penalties faced by claimants who take extra work. |
It has prompted speculation over whether Mr Duncan Smith might resign over the row. | It has prompted speculation over whether Mr Duncan Smith might resign over the row. |
But asked on the BBC's Andrew Marr Show if Mr Duncan Smith would leave, Foreign Secretary Philip Hammond said: "I don't think so." | But asked on the BBC's Andrew Marr Show if Mr Duncan Smith would leave, Foreign Secretary Philip Hammond said: "I don't think so." |
Also on Monday, Prime Minister David Cameron will address the annual conference of business lobbying group, the CBI. | Also on Monday, Prime Minister David Cameron will address the annual conference of business lobbying group, the CBI. |
He will say that the spending review, which sets out where government cuts will fall over the next five years, will be about putting the security of UK families first. | He will say that the spending review, which sets out where government cuts will fall over the next five years, will be about putting the security of UK families first. |
"By making the further savings we need over the course of this parliament, we can prioritise what matters for working families - schools, the NHS and our national security," Mr Cameron is expected to say. | "By making the further savings we need over the course of this parliament, we can prioritise what matters for working families - schools, the NHS and our national security," Mr Cameron is expected to say. |