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Spending review: your pre-lunchtime data appetiser Spending review: your pre-lunchtime data appetiser
(3 months later)
After much governmental wrangling, the chancellor will announce the budget of each Whitehall department in 2015-16. The latest spending round, due to be announced this afternoon, will inevitably continue the focus on cuts - but what else do we know? Here's a quick guide to some key facts.After much governmental wrangling, the chancellor will announce the budget of each Whitehall department in 2015-16. The latest spending round, due to be announced this afternoon, will inevitably continue the focus on cuts - but what else do we know? Here's a quick guide to some key facts.
£11.5bn in savings£11.5bn in savings
This is the amount of extra savings George Osborne has targeted from across departments in 2015-16 so what we're waiting for is information about where the cuts will fall. But £11.5bn in savings does not mean borrowing will be £0bn. The chancellor will announce £745bn in planned spending and £660bn in tax revenues, so some borrowing will still be needed, although the government is trying to reduce this amount.This is the amount of extra savings George Osborne has targeted from across departments in 2015-16 so what we're waiting for is information about where the cuts will fall. But £11.5bn in savings does not mean borrowing will be £0bn. The chancellor will announce £745bn in planned spending and £660bn in tax revenues, so some borrowing will still be needed, although the government is trying to reduce this amount.
Public sector net borrowing was £85.1bn for the 2012-13 financial year, down from £120.9bn the previous year. You can find all the data on the government's deficit and borrowing trends here.Public sector net borrowing was £85.1bn for the 2012-13 financial year, down from £120.9bn the previous year. You can find all the data on the government's deficit and borrowing trends here.
The savings that need to be found won't be distributed equally across government departments, however, and a lot of the pre-spending review work consists of negotiations about how much will be cut from where. Anticipations about spending changes abound - such as the expectation that the Department for Business, Innovation and Skills will need to find an additional £1.1bn in savings.The savings that need to be found won't be distributed equally across government departments, however, and a lot of the pre-spending review work consists of negotiations about how much will be cut from where. Anticipations about spending changes abound - such as the expectation that the Department for Business, Innovation and Skills will need to find an additional £1.1bn in savings.
Ring-fencingRing-fencing
The example above shows how talk about ring-fencing might be a bit misleading. Though 'schools' might be protected from further cuts, that does not mean that education as a whole is protected.The example above shows how talk about ring-fencing might be a bit misleading. Though 'schools' might be protected from further cuts, that does not mean that education as a whole is protected.
It's also important to bear in mind that any talk of budget cuts and increases today should be made in reference to real-terms figures, i.e. taking account of inflation. For example, were the budget for a ring-fenced department to remain the same in nominal terms from 2014/15 to 2015/16, this would represent a real-terms cut, given the anticipated rise in the general price level for the same period.It's also important to bear in mind that any talk of budget cuts and increases today should be made in reference to real-terms figures, i.e. taking account of inflation. For example, were the budget for a ring-fenced department to remain the same in nominal terms from 2014/15 to 2015/16, this would represent a real-terms cut, given the anticipated rise in the general price level for the same period.
Sub-departmental levelSub-departmental level
We won't find out today how each department's agreed budget change will be distributed across its subsidiaries - for example whether the British Council or the coastguard will need to make extra cuts by 2015-16. Today will only give us the chancellor's plans for top tier departmental budgets.We won't find out today how each department's agreed budget change will be distributed across its subsidiaries - for example whether the British Council or the coastguard will need to make extra cuts by 2015-16. Today will only give us the chancellor's plans for top tier departmental budgets.
Round not reviewRound not review
You'll hear about the comprehensive spending review (CSR) all day (including from us) but technically this is a single spending round since it will only cover one financial year - April 2015 to April 2016.You'll hear about the comprehensive spending review (CSR) all day (including from us) but technically this is a single spending round since it will only cover one financial year - April 2015 to April 2016.
You can watch HM Treasury's video explaining the spending round below.You can watch HM Treasury's video explaining the spending round below.
We will be providing analysis and visualisation of the CSR data as it emerges, so get in touch with any comments or suggestions of specific areas to drill down into either in the comments below or via Twitter at @MonaChalabi, @jburnmurdoch or the official @GuardianData account.We will be providing analysis and visualisation of the CSR data as it emerges, so get in touch with any comments or suggestions of specific areas to drill down into either in the comments below or via Twitter at @MonaChalabi, @jburnmurdoch or the official @GuardianData account.
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