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| Osborne: agreement with Cable over spending review close | Osborne: agreement with Cable over spending review close |
| (35 minutes later) | |
| George Osborne has denied claims that a row with Vince Cable is holding up his attempts to finalise the spending review for 2015-16 due to be announced shortly. | George Osborne has denied claims that a row with Vince Cable is holding up his attempts to finalise the spending review for 2015-16 due to be announced shortly. |
| In an interview on the BBC's The Andrew Marr Show on Sunday, the chancellor confirmed that he had yet to reach agreement with the Libe Dem business secretary, but he insisted that a deal was close. | |
| He also confirmed that he had struck an agreement with Philip Hammond, the defence secretary, on Saturday night that will see some civilian posts go at the Ministry of Defence but no reduction in the number of frontline service personnel. | |
| There have been claims that Osborne and Cable have been at loggerheads over the spending review, which will be announced on Wednesday and is due to deliver £11.5bn worth of cuts in government spending for 2015-16. Cable is reportedly resisting cuts demanded by the Treasury, and one of his allies has been quoted in a Sunday paper saying the business secretary "will not be bullied" by the chancellor. | |
| But Osborne insisted that the gap between the two departments was now relatively minor. | But Osborne insisted that the gap between the two departments was now relatively minor. |
| "There's actually not a massive argument. Of course we're arguing about the small details, but not the big picture," he said. | |
| "Actually, Vince Cable and I want to achieve the same things – support the things that back the economy. I, as a personal priority, want to see science supported – that's part of this budget, and because Britain leads the world in science, and that's all about Britain's economic future." | "Actually, Vince Cable and I want to achieve the same things – support the things that back the economy. I, as a personal priority, want to see science supported – that's part of this budget, and because Britain leads the world in science, and that's all about Britain's economic future." |
| Osborne said he was now "pretty confident" that he would reach a deal with Cable shortly. | |
| On defence, the chancellor said that agreeing cuts had been expected to be one of his most difficult challenges, but that a settlement was reached on Saturday. | |
| "It's going to involve some tough choices," Osborne said. "The civilian headcount is going to have to reduce in our defence department." | "It's going to involve some tough choices," Osborne said. "The civilian headcount is going to have to reduce in our defence department." |
| The MoD would also renegotiate contracts with some of its biggest suppliers, he said, but the fronline would not be affected. | The MoD would also renegotiate contracts with some of its biggest suppliers, he said, but the fronline would not be affected. |
| "There will not be a reduction in our military capability. We're not going to reduce the number of soldiers, sailors, airmen, and in fact we're actually going to be able to spend some money on things like cyber [security], which is the new frontier in defence." | "There will not be a reduction in our military capability. We're not going to reduce the number of soldiers, sailors, airmen, and in fact we're actually going to be able to spend some money on things like cyber [security], which is the new frontier in defence." |
| Osborne also said the government would be spending an extra £10m a year supporting injured servicemen and women by using money paid in fines by banks implicated in the Libor scandal. | Osborne also said the government would be spending an extra £10m a year supporting injured servicemen and women by using money paid in fines by banks implicated in the Libor scandal. |
| Labour says Osborne's decision to hold a spending review amounts to admission that his original austerity plan failed to cut the deficit in the way he anticipated. | Labour says Osborne's decision to hold a spending review amounts to admission that his original austerity plan failed to cut the deficit in the way he anticipated. |
| But Osborne said the economy was now "out of intensive care" and that his priority was to secure its recovery. | |
| "I think we can turn this country round, but we've got to stick at the economic plan – that is, reducing our debts, making our businesses more competitive, helping to create jobs, making sure Britain can win the global race," he said. | "I think we can turn this country round, but we've got to stick at the economic plan – that is, reducing our debts, making our businesses more competitive, helping to create jobs, making sure Britain can win the global race," he said. |