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Education budget loses £1bn more Education budget loses £1bn more
(40 minutes later)
By Sean Coughlan BBC News education correspondent The education department faces more cutsBy Sean Coughlan BBC News education correspondent The education department faces more cuts
The education budget in England faces another £1bn reduction, following an announcement from the Treasury.The education budget in England faces another £1bn reduction, following an announcement from the Treasury.
The Department for Business, Innovation and Skills, responsible for universities, will lose £265m.The Department for Business, Innovation and Skills, responsible for universities, will lose £265m.
Chief Secretary to the Treasury, Danny Alexander, said the cuts followed "unfunded promises".Chief Secretary to the Treasury, Danny Alexander, said the cuts followed "unfunded promises".
The announcement was made as the coalition government also cancelled much of the school re-building programme.The announcement was made as the coalition government also cancelled much of the school re-building programme.
The reductions in education spending are part of a total cuts across government of £1.54bn, announced by the Treasury.The reductions in education spending are part of a total cuts across government of £1.54bn, announced by the Treasury.
'Cancelling plans''Cancelling plans'
They will affect spending plans which had depended upon funding from an underspend at the end of the financial year - the "end year flexibility".They will affect spending plans which had depended upon funding from an underspend at the end of the financial year - the "end year flexibility".
The BBC has learned that £800m of the £1bn to be cut from education was intended as a reserve - and so would not have been allocated for spending plans. Not all of the £1bn to be cut from education will have been allocated - some of it is in reserve and the education department says savings can be achieved through "better financial management and tighter controls".
But £200m of the funding is thought to have already been ear-marked for projects which will now be cancelled. But £169.5m of the funding has already been ear-marked for projects which will now be cancelled.
The Treasury says this will mean "cancelling or re-prioritising spending plans", but has not yet said how the savings will be made.
"The previous government committed to spending money it simply did not have, but this coalition government has taken action to address this serious situation," said Mr Alexander."The previous government committed to spending money it simply did not have, but this coalition government has taken action to address this serious situation," said Mr Alexander.
"The decisions have not been easy, but the understanding and cooperation of my Cabinet colleagues has enabled us to act swiftly to ensure that the nation can live within its means.""The decisions have not been easy, but the understanding and cooperation of my Cabinet colleagues has enabled us to act swiftly to ensure that the nation can live within its means."
The Shadow Education Secretary Ed Balls has rejected any suggestion that any of his spending plans, under the Labour government, had not been correctly funded.The Shadow Education Secretary Ed Balls has rejected any suggestion that any of his spending plans, under the Labour government, had not been correctly funded.
The end-year flexibility is a mechanism whereby departments may carry forward unspent budget provision into later financial yearsThe end-year flexibility is a mechanism whereby departments may carry forward unspent budget provision into later financial years