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Ministers told to prepare for more cuts of up to 10% | Ministers told to prepare for more cuts of up to 10% |
(35 minutes later) | |
The Treasury has written to government departments warning most ministers they will have to cut up to 10% of their budgets for the year 2015/16. | The Treasury has written to government departments warning most ministers they will have to cut up to 10% of their budgets for the year 2015/16. |
Spending on health, schools and international aid will continue to be given protection. | Spending on health, schools and international aid will continue to be given protection. |
Ministers are preparing for the spending review to be held on 26 June. | Ministers are preparing for the spending review to be held on 26 June. |
Chancellor George Osborne announced in last week's Budget speech that he wanted to cut another £11.5bn from public spending. | Chancellor George Osborne announced in last week's Budget speech that he wanted to cut another £11.5bn from public spending. |
Danny Alexander, the Chief Secretary to the Treasury, wrote on Wednesday to ministers telling them that that would mean reductions of up to 10% from each of their budgets, on top of the savings they have already made. | Danny Alexander, the Chief Secretary to the Treasury, wrote on Wednesday to ministers telling them that that would mean reductions of up to 10% from each of their budgets, on top of the savings they have already made. |
'Flexibility' | |
Defence spending will be partly protected, with the Ministry of Defence's equipment budget rising by 1% above inflation. The rest of its spending will be cut by just 5%. | Defence spending will be partly protected, with the Ministry of Defence's equipment budget rising by 1% above inflation. The rest of its spending will be cut by just 5%. |
BBC deputy political editor James Landale said the figures were not final, but the Treasury's "opening gambit for negotiations in the weeks ahead". | BBC deputy political editor James Landale said the figures were not final, but the Treasury's "opening gambit for negotiations in the weeks ahead". |
A Treasury spokesman said: "The chief secretary has today written to departments to set their planning assumptions for the 2015/16 spending round. Setting planning assumptions is a normal part of the spending round process. These are planning assumptions that allow flexibility, not final decisions." | A Treasury spokesman said: "The chief secretary has today written to departments to set their planning assumptions for the 2015/16 spending round. Setting planning assumptions is a normal part of the spending round process. These are planning assumptions that allow flexibility, not final decisions." |
For Labour, shadow Treasury minister Chris Leslie said: "David Cameron and George Osborne never wanted or expected this spending review to happen. | |
"They said their plan would balance the books by the next election, but their failure to deliver economic growth means there is now set to be a deficit of over £90bn in 2015/16. That's the reason why the Treasury is now looking for even more spending cuts and tax rises." |
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