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Agreements reached with departments on spending plans George Osborne: Seven departments agree new spending cuts
(about 2 hours later)
Chancellor George Osborne has reached agreement with seven Whitehall departments on some of the savings the government wants to make in 2015. George Osborne has reached agreement with seven Whitehall departments on savings ministers want to make in 2015.
Mr Osborne wants to reduce spending for the year by £11.5bn, some of which he says will be earmarked for infrastructure projects. The chancellor said he had found 20% of the £11.5bn he wants to cut spending by in the year from April 2015.
Full details of the deals he has struck with ministers will not be revealed until next month's spending review. Justice, energy and communities are among the departments agreeing to "significant savings", he said, adding that health, schools and foreign aid would be protected from cuts.
The opposition is expected to say the government has cut too much too fast.The opposition is expected to say the government has cut too much too fast.
Mr Osborne told BBC Breakfast said no chancellor had got so far in agreeing so many plans so far ahead of a spending review - which is due towards the end of June.
He said that negotiations over savings continued with the Ministry of Defence and the Home Office, but he said he would not do anything to put at risk people's safety "at home or abroad".
On a visit to north-west England later, Mr Osborne is expected to announce the departments in question, but the financial details will be held back until the review, which will set out spending for the year from April 2015, is presented to Parliament.On a visit to north-west England later, Mr Osborne is expected to announce the departments in question, but the financial details will be held back until the review, which will set out spending for the year from April 2015, is presented to Parliament.
It is understood that taken together the savings agreed so far in talks with departments and in previous announcements mean the Treasury still has to find £8bn of the £11.5bn to be saved in the spending review.It is understood that taken together the savings agreed so far in talks with departments and in previous announcements mean the Treasury still has to find £8bn of the £11.5bn to be saved in the spending review.
The chancellor will highlight a decision made in the Budget to find extra cuts in Whitehall in order to spend more on infrastructure.The chancellor will highlight a decision made in the Budget to find extra cuts in Whitehall in order to spend more on infrastructure.
Fractious negotiatingFractious negotiating
BBC political correspondent Ross Hawkins says the significance of the provisional agreements will become clear only once Mr Osborne reveals which departments have signed up and it is known whether the list includes the biggest and most politically significant Whitehall spenders.BBC political correspondent Ross Hawkins says the significance of the provisional agreements will become clear only once Mr Osborne reveals which departments have signed up and it is known whether the list includes the biggest and most politically significant Whitehall spenders.
The figures suggest there is plenty of fractious negotiating between departments and coalition partners still to be done, he added.The figures suggest there is plenty of fractious negotiating between departments and coalition partners still to be done, he added.
Mr Osborne has indicated there will be no support for a second Crossrail scheme for London in the spending review.Mr Osborne has indicated there will be no support for a second Crossrail scheme for London in the spending review.
He believes work on the current £16bn Crossrail project should be completed first, in 2018, before he considers further major transport schemes for London.He believes work on the current £16bn Crossrail project should be completed first, in 2018, before he considers further major transport schemes for London.
Earlier this month, the Commons Public Accounts Committee warned the UK may not be able to afford projected levels of spending on military equipment over the next decade.Earlier this month, the Commons Public Accounts Committee warned the UK may not be able to afford projected levels of spending on military equipment over the next decade.
Its report was based on a government pledge for a 1% increase in defence spending in the review, and in following years.Its report was based on a government pledge for a 1% increase in defence spending in the review, and in following years.