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-23053693

The article has changed 15 times. There is an RSS feed of changes available.

Version 6 Version 7
Spending Review: Public sector staff to lose automatic pay rise Spending Review: Public sector staff to lose automatic pay rise
(35 minutes later)
Millions of public sector workers will lose automatic annual pay increases as part of an £11.5bn cuts package being unveiled by Chancellor George Osborne. Millions of public sector workers will lose automatic annual pay increases as part of an £11.5bn cuts package unveiled by Chancellor George Osborne.
Mr Osborne said it was "deeply unfair" to public servants who did not get it and the private sector who paid for it. He also announced a cap on total welfare spending and axed winter fuel payments for expatriate pensioners in hot countries from 2015.
The chancellor is setting out spending cuts for 2015/16 forced on him by slower than expected economic growth and deficit reduction. And unemployed people will have to visit the job centre every week instead of fortnightly.
Labour has said it will stick to the plans if it wins the 2015 election. The cuts package will cover a single financial year - 2015/16.
Briefing MPs on the plans, which will kick in just before the election, Mr Osborne insisted the economy was on the right track, saying: "Britain is moving out of intensive care and moving from rescue to recovery." It was forced on the chancellor by slower than expected economic growth and deficit reduction but he insisted the economy was on the right track, telling MPs: "Britain is moving out of intensive care and moving from rescue to recovery."
Further job cuts Tougher regime
He said the cuts would be done in a fair way and would boost growth. Reforms such as ending "progression pay" in favour of performance-related increases would ease the pain. He said the cuts, which will kick in shortly before the next general election, would ensure Britain "lives within its means" but they would be guided by fairness, growth and reform.
"Progression pay can at best be described as antiquated; at worst, it's deeply unfair to other parts of the public sector who don't get it and to the private sector who have to pay for it. He announced that annual incremental pay increases in the civil service would be axed in 2015 and a fresh push to remove automatic pay rises for time served in NHS, prisons and police. The armed forces will be excluded from the changes.
"So we will end automatic progression pay in the Civil Service by 2015-16. He told MPs: "Progression pay can at best be described as antiquated; at worst, it's deeply unfair to other parts of the public sector who don't get it and to the private sector who have to pay for it."
"And we are working to remove automatic pay rises simply for time served in our schools, NHS, prisons and police. Mr Osborne also announced a cap on the total amount the government spends on welfare each year, including housing benefit, disability benefit, tax credits and pensioner benefits - but excluding the state pension.
"The armed forces will be excluded from these reforms. Governments breaching the cap would be censured by the Office for Budget Responsibility and have to explain their actions to Parliament.
"Keeping pay awards down and ending automatic progression pay means that, for every pound we have to save in central administration, we can better limit job losses." He also axed winter fuel payments for expatriate pensioners living in warm countries, saying the benefit would be linked to a "temperature test" from 2015.
He also warned of further job cuts in the public sector, as he unveiled a 10% budget cut for the department for communities and local government. And he announced a tougher regime for job seekers, saying they will have to visit the JobCentre every week to spend more time with advisors. There will also be a seven day wait before people can claim benefits.
Security services "Those first few days should be spent looking for work, not looking to sign on," said Mr Osborne.
The heath service, schools and foreign aid will continue to be protected from budget cuts, Mr Osborne confirmed, meaning that all other department are taking a bigger hit, with average cuts of between 8% and 10%. "We're doing these things because we know they help people stay off benefits and help those on benefits get back into work faster."
The Department for Communities and Local Government, the Treasury and the Department for the Environment and Rural Affairs appear to have taken the biggest hits, with budget cuts for 2015/16 of 10%. In a further change, claimants who cannot speak English "will have to attend language courses until they do".
Biggest winners
He also warned of further job cuts in the public sector.
Mr Osborne confirmed that the health service, schools in England and foreign aid would continue to be protected from budget cuts.
But that means all other departments will have to take a bigger hit, with average budget cuts for 2015/16 of between 8% and 10%.
The Department for Communities and Local Government, the Treasury and the Department for the Environment and Rural Affairs appear to have taken the biggest hits, with budget cuts for 2015/16 of 10%. The Department for Work and Pensions will have to save 9.5% in its running costs.
Theresa May's Home Office escaped with cuts of 6% and a commitment to protect anti-terror policing.Theresa May's Home Office escaped with cuts of 6% and a commitment to protect anti-terror policing.
Vince Cable's business department - the last to reach a deal with Mr Osborne after tough negotiations - also got off relatively lightly with cuts of 6% and a commitment to keep money for more apprenticeships, but student grants will be frozen.Vince Cable's business department - the last to reach a deal with Mr Osborne after tough negotiations - also got off relatively lightly with cuts of 6% and a commitment to keep money for more apprenticeships, but student grants will be frozen.
The culture department also escaped the worst of the cuts, with a reduction of 7%, while the Foreign Office will be cut by 8%.The culture department also escaped the worst of the cuts, with a reduction of 7%, while the Foreign Office will be cut by 8%.
The security services were the biggest winners, with a 3.4% boost to funding, with Mr Osborne praising their "heroic" efforts to "protect us and our way of life".The security services were the biggest winners, with a 3.4% boost to funding, with Mr Osborne praising their "heroic" efforts to "protect us and our way of life".
Timeframe slipped
There will be no further cuts to benefits - but Mr Osborne announce plans for cap on welfare spending in his statement.
The chancellor also announced long-term plans to invest more in Britain's infrastructure in building roads, railways and housing, with full details to follow on Thursday.The chancellor also announced long-term plans to invest more in Britain's infrastructure in building roads, railways and housing, with full details to follow on Thursday.
The next general election is scheduled for May 2015 and the Conservative-Liberal Democrat coalition has to set out its budgetary plans for the final few weeks of its time in office, irrespective of the outcome of the poll.The next general election is scheduled for May 2015 and the Conservative-Liberal Democrat coalition has to set out its budgetary plans for the final few weeks of its time in office, irrespective of the outcome of the poll.
Labour has said that it would match the coalition's current spending totals for the full one-year period.Labour has said that it would match the coalition's current spending totals for the full one-year period.
The chancellor had initially hoped to eliminate the structural deficit - the portion of borrowing that is not affected by changes in the economic cycle - entirely by 2014-15.The chancellor had initially hoped to eliminate the structural deficit - the portion of borrowing that is not affected by changes in the economic cycle - entirely by 2014-15.
But the timeframe for this has slipped to 2017-18 and Mr Osborne will have to borrow £275bn more than he expected in this parliament than at the time of his first Budget in 2010.But the timeframe for this has slipped to 2017-18 and Mr Osborne will have to borrow £275bn more than he expected in this parliament than at the time of his first Budget in 2010.
The government says it has cut overall borrowing by a quarter since coming to power and by a third as a share of GDP.The government says it has cut overall borrowing by a quarter since coming to power and by a third as a share of GDP.
Revised official figures released on Friday showed that borrowing rose slightly to £118.8bn in 2012-13 from £118.5bn the year before.Revised official figures released on Friday showed that borrowing rose slightly to £118.8bn in 2012-13 from £118.5bn the year before.
Labour leader Ed Miliband said the coalition had broken its promise to clear the deficit and the British people were paying the price for its failure.Labour leader Ed Miliband said the coalition had broken its promise to clear the deficit and the British people were paying the price for its failure.
Speaking ahead of the chancellor's statement, he said: "They tell us the economy is healing in government but actually things are getting worse for ordinary families. What we actually need is a fairer plan to get growth moving, living standards rising and the deficit down."Speaking ahead of the chancellor's statement, he said: "They tell us the economy is healing in government but actually things are getting worse for ordinary families. What we actually need is a fairer plan to get growth moving, living standards rising and the deficit down."