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-politics-21850011
The article has changed 19 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Budget 2013: George Osborne set to detail £2.5bn cuts | Budget 2013: George Osborne set to detail £2.5bn cuts |
| (about 3 hours later) | |
| George Osborne will set out how he intends to use cuts to Whitehall budgets to benefit the economy, when he delivers his fourth Budget later. | George Osborne will set out how he intends to use cuts to Whitehall budgets to benefit the economy, when he delivers his fourth Budget later. |
| The chancellor has told cabinet colleagues they will have to cut 2% of their departments' spending over the next two years, saving about £2.5bn. | The chancellor has told cabinet colleagues they will have to cut 2% of their departments' spending over the next two years, saving about £2.5bn. |
| The money will go to infrastructure projects designed to boost growth. | The money will go to infrastructure projects designed to boost growth. |
| The Budget comes after the economy shrank at the end of 2012 and the UK lost its triple A credit rating. | The Budget comes after the economy shrank at the end of 2012 and the UK lost its triple A credit rating. |
| The government has been under increasing pressure over its economic strategy as a result of those developments. | The government has been under increasing pressure over its economic strategy as a result of those developments. |
| Mr Osborne will start speaking in the House of Commons at 12:30 GMT, straight after Prime Minister's Questions. | Mr Osborne will start speaking in the House of Commons at 12:30 GMT, straight after Prime Minister's Questions. |
| Conservative MPs have called for tax cuts and a spending freeze, while Lib Dem Business Secretary Vince Cable has led calls for an increase in capital spending, to build roads and houses. | Conservative MPs have called for tax cuts and a spending freeze, while Lib Dem Business Secretary Vince Cable has led calls for an increase in capital spending, to build roads and houses. |
| Schools protected | |
| But both Prime Minister David Cameron and Mr Osborne have insisted they will stick to the deficit reduction course they set out in 2010 and have ruled out more borrowing. | But both Prime Minister David Cameron and Mr Osborne have insisted they will stick to the deficit reduction course they set out in 2010 and have ruled out more borrowing. |
| Instead, the additional 2% departmental cuts - which come on top of the 3% spending reductions announced for the next two years in last year's Autumn Statement - will be used to boost capital spending. | Instead, the additional 2% departmental cuts - which come on top of the 3% spending reductions announced for the next two years in last year's Autumn Statement - will be used to boost capital spending. |
| The budgets for health, schools and HM Revenue & Customs will be unaffected by the cuts. | The budgets for health, schools and HM Revenue & Customs will be unaffected by the cuts. |
| Overseas aid will also be shielded, while local government and police budgets will be protected for the first year. | Overseas aid will also be shielded, while local government and police budgets will be protected for the first year. |
| However, other government departments, such as justice, environment and Scotland, Wales and Northern Ireland, will be told to deliver a further 1% cut to their day-to-day budgets in both 2013-14 and 2014-15. | However, other government departments, such as justice, environment and Scotland, Wales and Northern Ireland, will be told to deliver a further 1% cut to their day-to-day budgets in both 2013-14 and 2014-15. |
| The move has been made possible by under-spending by government departments this year, which "reflected the success that secretaries of state across the board have had, working with the Treasury, on bringing departmental resource spending down", a Number 10 spokesman said. | The move has been made possible by under-spending by government departments this year, which "reflected the success that secretaries of state across the board have had, working with the Treasury, on bringing departmental resource spending down", a Number 10 spokesman said. |
| Total annual underspending across Whitehall have averaged about £6bn since 2007 and the figure for 2012-13 will be announced later. | Total annual underspending across Whitehall have averaged about £6bn since 2007 and the figure for 2012-13 will be announced later. |
| As well as additional cuts, Mr Osborne is also expected to set out the "spending envelope" - the total amount of spending available to departments - in the forthcoming Spending Review, which will take place on 26 June. | As well as additional cuts, Mr Osborne is also expected to set out the "spending envelope" - the total amount of spending available to departments - in the forthcoming Spending Review, which will take place on 26 June. |
| Government policy on alcohol pricing is also expected to be announced by the chancellor, following reports the government has ditched plans for a 45p-per-unit minimum alcohol price in England and Wales. | Government policy on alcohol pricing is also expected to be announced by the chancellor, following reports the government has ditched plans for a 45p-per-unit minimum alcohol price in England and Wales. |
| BBC political editor Nick Robinson says Mr Osborne may be considering scrapping the beer duty escalator, which automatically increases alcohol duty by 2% above inflation every year. | BBC political editor Nick Robinson says Mr Osborne may be considering scrapping the beer duty escalator, which automatically increases alcohol duty by 2% above inflation every year. |
| If so, he will feel under pressure to increase taxes on cheap but strong alcoholic drinks to show that the government has not abandoned Mr Cameron's campaign to crack down on cheap booze, our correspondent says. | If so, he will feel under pressure to increase taxes on cheap but strong alcoholic drinks to show that the government has not abandoned Mr Cameron's campaign to crack down on cheap booze, our correspondent says. |
| A boost for house-building and an extension of the government's NewBuy scheme, which helps people with small deposits buy newly built homes, may also be included in the Budget. | A boost for house-building and an extension of the government's NewBuy scheme, which helps people with small deposits buy newly built homes, may also be included in the Budget. |
| Inflation target | Inflation target |
| And there has been speculation the chancellor may look at changing the remit of the Bank of England to help the economy get back to sustained growth. | And there has been speculation the chancellor may look at changing the remit of the Bank of England to help the economy get back to sustained growth. |
| Rising energy prices contributed to a rise in UK consumer price inflation in February, taking it to 2.8%. | Rising energy prices contributed to a rise in UK consumer price inflation in February, taking it to 2.8%. |
| Inflation running higher than the 2% target makes life harder for the government as it tries to balance the books, as assumptions made about spending can turn out to be too low. | Inflation running higher than the 2% target makes life harder for the government as it tries to balance the books, as assumptions made about spending can turn out to be too low. |
| There is talk that the chancellor will alter the 2% inflation target mandate set for the Bank of England's interest rate-setting Monetary Policy Committee in his Budget. | There is talk that the chancellor will alter the 2% inflation target mandate set for the Bank of England's interest rate-setting Monetary Policy Committee in his Budget. |
| In July, the current governor, Sir Mervyn King, will make way for Canadian Mark Carney. | In July, the current governor, Sir Mervyn King, will make way for Canadian Mark Carney. |
| He and others have expressed interest in expanding the Bank's role in some way, potentially targeting growth or unemployment alongside its current inflation target. | He and others have expressed interest in expanding the Bank's role in some way, potentially targeting growth or unemployment alongside its current inflation target. |
| Ahead of the Budget the government announced plans for some parents in the UK to be able to claim back up to £1,200 a year for each child - or 20% of childcare costs - from 2015. | Ahead of the Budget the government announced plans for some parents in the UK to be able to claim back up to £1,200 a year for each child - or 20% of childcare costs - from 2015. |
| Mr Cameron said the plans, expected to cost £1.4bn, would be a "boost direct to the pockets of hard-working families". | Mr Cameron said the plans, expected to cost £1.4bn, would be a "boost direct to the pockets of hard-working families". |
| Meanwhile, members of the UK's largest civil service union, the Public and Commercial Services Union, are staging a 24-hour strike on Wednesday in a dispute over pay, pensions and working conditions. | Meanwhile, members of the UK's largest civil service union, the Public and Commercial Services Union, are staging a 24-hour strike on Wednesday in a dispute over pay, pensions and working conditions. |
| Government departments, driving test centres, museums and job centres are among workplaces expected to be hit while meetings at the Welsh assembly have been rearranged because Labour and Plaid Cymru members will not cross a picket line. | Government departments, driving test centres, museums and job centres are among workplaces expected to be hit while meetings at the Welsh assembly have been rearranged because Labour and Plaid Cymru members will not cross a picket line. |
| A rally will be held at Westminster while Mr Osborne delivers his Budget. | A rally will be held at Westminster while Mr Osborne delivers his Budget. |