This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/uk-34763261

The article has changed 10 times. There is an RSS feed of changes available.

Version 5 Version 6
Spending review: George Osborne 'secures deals' on 30% cuts Spending review: George Osborne 'secures deals' on 30% cuts
(about 2 hours later)
Four government departments have provisionally agreed to cut their spending by an average of 30% over the next four years, Chancellor George Osborne has announced.Four government departments have provisionally agreed to cut their spending by an average of 30% over the next four years, Chancellor George Osborne has announced.
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 said.The cuts will help the public finances back into surplus, he said.
A Treasury source told BBC News the agreements were "really good progress".A Treasury source told BBC News the agreements were "really good progress".
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 and it has been revealed there are plans for nine new prisons to replace old jails.Negotiations are continuing with others, the source added and it has been revealed there are plans for nine new prisons to replace old jails.
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.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 in London, Mr Osborne warned that if the government does not control spending and reduce levels of national debt there is a risk of loss of confidence in the economy.In a speech in London, Mr Osborne warned that if the government does not control spending and reduce levels of national debt there is a risk of loss of confidence in the economy.
"I know some ask: why do we need this surplus?" he said. "I'll tell you why: to protect working people."I know some ask: why do we need this surplus?" he said. "I'll tell you why: to protect working people.
"A surplus will make our country more resilient, safe and secure. It means that next time we have the money to help us through the tough times when the storms come. Let me put it another way: if our country doesn't bring the deficit down, the deficit could bring our country down."A surplus will make our country more resilient, safe and secure. It means that next time we have the money to help us through the tough times when the storms come. Let me put it another way: if our country doesn't bring the deficit down, the deficit could bring our country down.
"That's why, for the economic security of every family in Britain, the worst thing we could do now as a country is lose our nerve.""That's why, for the economic security of every family in Britain, the worst thing we could do now as a country is lose our nerve."
'No tax rises''No tax rises'
The settlement with the four departments will see their day-to-day spending cut by 8% in each of the next four years. This will be achieved, Mr Osborne said, through a combination of further efficiencies, stopping some areas of spending and refocusing others.The settlement with the four departments will see their day-to-day spending cut by 8% in each of the next four years. This will be achieved, Mr Osborne said, through a combination of further efficiencies, stopping some areas of spending and refocusing others.
He insists this will not affect capital spending and investment in infrastructure such as road and rail upgrades, flood defences and broadband.He insists this will not affect capital spending and investment in infrastructure such as road and rail upgrades, flood defences and broadband.
During the election campaign, Mr Osborne ruled out increasing income tax, VAT and national insurance to help pay down the annual deficit, the difference between the money the government raises and what it spends, which is forecast to total £69.5bn this year.During the election campaign, Mr Osborne ruled out increasing income tax, VAT and national insurance to help pay down the annual deficit, the difference between the money the government raises and what it spends, which is forecast to total £69.5bn this year.
Paul Johnson, the director of the Institute of Fiscal Studies, said these pledges meant cuts of the magnitude being talked about would be needed if the government was to hit its target of reaching a budget surplus by 2019-2020.Paul Johnson, the director of the Institute of Fiscal Studies, said these pledges meant cuts of the magnitude being talked about would be needed if the government was to hit its target of reaching a budget surplus by 2019-2020.
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.
'More about politics than economic'
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.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.
Also on Monday, Prime Minister David Cameron addressed the annual conference of business lobbying group, the CBI.Also on Monday, Prime Minister David Cameron addressed the annual conference of business lobbying group, the CBI.
He said that the spending review, which sets out where government cuts will fall over the next five years, was about putting the security of UK families first.He said that the spending review, which sets out where government cuts will fall over the next five years, was 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 said."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 said.
For Labour, shadow chancellor John McDonnell said the government's approach was "more about the politics than the economics". He accused ministers of getting their priorities wrong and undermining "those people who are working hard by cutting their tax credits".
He told the BBC Labour would stop tax cuts to the wealthiest and would continue to oppose cuts to corporation tax. He insisted that Labour would make sure corporations and the wealthiest paid their taxes and warned that cuts to HMRC's budget would mean that even more tax collectors were laid off.