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| Osborne's spending review – winners and losers at a glance | Osborne's spending review – winners and losers at a glance |
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| Guardian specialists examine the key areas covered by today's spending review and identify the winners and losers across the government. | Guardian specialists examine the key areas covered by today's spending review and identify the winners and losers across the government. |
| Please note this article will continue to be updated throughout the day. Refresh the page for the latest additions. | Please note this article will continue to be updated throughout the day. Refresh the page for the latest additions. |
| WINNERS | WINNERS |
| Intelligence agencies and armed forces | |
| The security and intelligence agencies - MI5, MI6, and GCHQ - will benefit from a 3.4% increase in their combined annual budget of nearly £2bn under the government’s spending plans, in a move likely to mark the start of a significant long-term trend. | |
| The overall defence budget will continue to fall but the chancellor announced a sweetener - fines on banks for fixing Libor inter-bank lending rates will fund the military covenant. How this will in practice benefit members of the armed forces, their families, and veterans, was not immediately clear. | |
| There will be no further cuts in the numbers of armed forces personnel - 4,480 soldiers have been handed redundancy notices as the force aims to reduce personnel numbers to 82,000 by 2018 from more than 100,000 three years ago. | |
| However, the number of civilians working for the Ministry of Defence will be cut further. The government has already announced cuts in defence civilian staff from 75,000 to 40,000 over nine years. | |
| The defence resource budget will be maintained in cash terms at £24bn, a cut in real terms, though, as already announced, the defence equipment budget, now totalling £14bn will grow by 1% in real terms in the year 2015/16. | |
| Both the armed forces and the intelligence agencies will be spending more money on cyber-warfare. MoD contracts with private contractors will be further scrutinised for savings. | |
| Rises in the MI5, MI6, and GCHQ budgets reverse this year’s budgetary cuts and was widely expected after the heads of the agencies lobbied for them even before the Woolwich attack on a soldier last month. | |
| The security and intelligence budgets are likely to rise for the foreseeable future as the amount of money spent on the armed forces falls. This is likely to be a long term trend. Richard Norton-Taylor | |
| Arts | Arts |
| “It is a relief,” said Mark Skipper, chief executive of Leeds-based Northern Ballet, as George Osborne announced a 5% cut for arts organisations. “Especially given that we were looking at modellings of 15% and the devastation that would cause. I think 5% is a good outcome.” | “It is a relief,” said Mark Skipper, chief executive of Leeds-based Northern Ballet, as George Osborne announced a 5% cut for arts organisations. “Especially given that we were looking at modellings of 15% and the devastation that would cause. I think 5% is a good outcome.” |
| That response will be echoed across the arts and museum sector. The DCMS has agreed a budget reduction of 7%, from which cuts to Arts Council England and national museums will be limited to 5%. The Treasury, it seems, listened to arguments that any more would spell disaster for a sector that is buoyant artistically but also a significant cash generator for the UK. | That response will be echoed across the arts and museum sector. The DCMS has agreed a budget reduction of 7%, from which cuts to Arts Council England and national museums will be limited to 5%. The Treasury, it seems, listened to arguments that any more would spell disaster for a sector that is buoyant artistically but also a significant cash generator for the UK. |
| Osborne said that national museums would have greater freedoms to use their budgets as they saw fit. | Osborne said that national museums would have greater freedoms to use their budgets as they saw fit. |
| But the DCMS cut is not the whole story. Also worrying are the 10% cuts to local government on which many arts groups rely on for funding. | But the DCMS cut is not the whole story. Also worrying are the 10% cuts to local government on which many arts groups rely on for funding. |
| Some had feared a repeat of 2010 when the Arts Council was given a 30% cut (including an order to cut its administration costs by half) from which arts organisations were cut 15%. That led to an enormous shake up, agonising for some – 206 organisations lost their regular funding – but good for others with 110 brought in to the portfolio for the first time. | Some had feared a repeat of 2010 when the Arts Council was given a 30% cut (including an order to cut its administration costs by half) from which arts organisations were cut 15%. That led to an enormous shake up, agonising for some – 206 organisations lost their regular funding – but good for others with 110 brought in to the portfolio for the first time. |
| What happens now? If you're the National Gallery, say, then it is straightforward: you make provision for a 5% cut. | What happens now? If you're the National Gallery, say, then it is straightforward: you make provision for a 5% cut. |
| If you're funded by ACE and/or local authorities then you make your application for funding and you wait. Arts organisations will have to submit applications and decisions will be made strategically – some may get cut, some may get an increase. Mark Brown | If you're funded by ACE and/or local authorities then you make your application for funding and you wait. Arts organisations will have to submit applications and decisions will be made strategically – some may get cut, some may get an increase. Mark Brown |
| Sport | |
| Almost one year on from a hugely successful Olympic Games, the extent of the promised legacy for sport on which it was secured is under the microscope. Recent figures from Sport England show that fewer people are playing sport regularly than they were before the Olympics and the 5% cut for community sport, part of an overall 7% cut to the DCMS announced today threatens to damage the government in perception terms. | |
| But, in practice, the cut to the exchequer-funded portion of Sport England's grassroots sport budget – which applies only to resource funding and not capital projects - will amount only to a few million pounds. | |
| The majority of its £300m annual budget now comes from the lottery following changes to the way that money is distributed. The sports minister, Hugh Robertson, is believed to be satisfied with the result of the spending negotiations after making the argument that deeper cuts would undermine the Olympic legacy case. | |
| The budget for elite Olympic and Paralympic sport, which will see £355m invested by UK Sport over the four years to 2016, was ringfenced as part of a deal unveiled during the Olympics when the medals were raining in. | |
| The more profound questions for the Olympic legacy, aside from whether Sport England can effect a genuine shift in the nation's sport habits with its comparatively meagre budget, come as a result of the further cuts to local authority budgets that will inevitably lead to pressure on faciltiies and community sport programmes. Owen Gibson | |
| LOSERS | |
| Environment | |
| Osborne has, as in 2010, inflicted the worst level of cuts on the Department for Environment, Food and Rural Affairs. He pledged to support flood defence spending - the department's really big ticket item - but Treasury documents show that this spending will remain level in cash terms. That's a real terms cut when the need for flood defences is rising due to climate change. Damian Carrington | |
| Public sector workers | |
| Millions of public sector workers will lose automatic annual pay increases as part of Osborne's £11.5bn cuts package. The chancellor said the current system was “deeply unfair” to public servants who did not receive the increase and the private sector. | |
| The announcement has provoked a furious response from unions. | |
| Osborne claimed that reforms such as ending “progression pay” in favour of performance-related increases would ease the pain. “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. So we will end automatic progression pay in the civil service by 2015-16,” he said. | |
| “And we are working to remove automatic pay rises simply for time served in our schools, NHS, prisons and police. The armed forces will be excluded from these reforms,” he added. | |
| Osborne said public sector pay rises will be limited to an average of up to 1% for 2015-16. | |
| “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 said. | |
| 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. | |
| The Public and Commercial Services union said it was “deeply unfair” to stop pay progression in the civil service. | |
| Ministers have already announced plans for a major overhaul of teachers’ pay. Rajeev Syal | |
| Wales | |
| Ahead of the spending review the Welsh government called for more money to be ploughed into infrastructure schemes to get the country's economy moving. | |
| But the people of south Wales are still waiting to find out whether one of the key projects – much-needed improvements to the M4 – will get the go-ahead. Osborne called the plans for the motorway scheme around Newport “impressive” but would not say more until the government gives its response to an ongoing commission's conclusions that more powers to raise tax and borrow money should be given to Wales. | |
| The M4 project is seen as crucial to prosperity in south Wales. There is a growing feeling that businesses are being put off investing in the region because of the frequent jams and accidents on the motorway. | |
| That response to the Silk Commission on devolution is due any week now but Osborne said the British government accepted that Cardiff's financial accountability and autonomy would be “enhanced” if it was partly self-financed. | |
| There will be no huge surprise that the Labour-led Welsh government's budget will be cut by 2% - the day to day revenue will be set at £13.6bn - nor that the Wales Office will reduce its running costs by 10%. | |
| What may disturb the country more is Osborne's concession that many more job losses in the public sector are inevitable and his announcement that automatic pay increases for teachers, hospital workers and so on will end. | |
| More than a quarter of those in employment in Wales – over 330,000 people – work in the public sector so any changes tend to hit Wales harder than other areas. | |
| Good news for Welsh speakers, though – the British government confirmed it will not reduce its funding for Welsh-language television channel S4C. Steven Morris | |
| MIXED PICTURE | |
| Transport | Transport |
| On transport, the chancellor has taken with one hand but given with the other. The Department for Transport’s day-to-day budget has been cut by 9%, but George Osborne said the capital budget for long-term schemes would rise to £9.5bn - an extra £600m in 2014-15. | On transport, the chancellor has taken with one hand but given with the other. The Department for Transport’s day-to-day budget has been cut by 9%, but George Osborne said the capital budget for long-term schemes would rise to £9.5bn - an extra £600m in 2014-15. |
| He indicated that Transport for London’s grant would take a major hit, and the government would also “bear down on the running costs” of rail administration. | He indicated that Transport for London’s grant would take a major hit, and the government would also “bear down on the running costs” of rail administration. |
| However, he also vowed to preserve mayor Boris Johnson’s annual capital budget of £1.8bn until 2020 - allowing London to continue to invest in tube upgrades and projects such as the Northern Line extension. | |
| That means fares may well rise again and some bus services are likely to suffer - news that comes on a day that TfL announced £2.5m in bonuses to executives. | That means fares may well rise again and some bus services are likely to suffer - news that comes on a day that TfL announced £2.5m in bonuses to executives. |
| Network Rail’s long-term budget is effectively ringfenced for now and Osborne pledged to continue “record” investment, but will be looking for more savings. | Network Rail’s long-term budget is effectively ringfenced for now and Osborne pledged to continue “record” investment, but will be looking for more savings. |
| Cuts in the budget may also affect road maintenance, even as Osborne promised to build more new ones than for 50 years. | Cuts in the budget may also affect road maintenance, even as Osborne promised to build more new ones than for 50 years. |
| The chancellor referenced projects mainly already announced: road spending, Crossrail and HS2 - whose budget is likely to get cross-party approval in a paving bill this afternoon. But he also endorsed looking at Crossrail 2, a new north-south rail line in London. | The chancellor referenced projects mainly already announced: road spending, Crossrail and HS2 - whose budget is likely to get cross-party approval in a paving bill this afternoon. But he also endorsed looking at Crossrail 2, a new north-south rail line in London. |
| Transport will though be the beneficiary of much of the £100bn in infrastructure projects that Danny Alexander will detail tomorrow (£300bn in total pledged until the end of the decade). Transport projects may also pick up some crumbs in a Local Growth fund the chancellor announced - but of just £2bn, lower than expected. Gwyn Topham | Transport will though be the beneficiary of much of the £100bn in infrastructure projects that Danny Alexander will detail tomorrow (£300bn in total pledged until the end of the decade). Transport projects may also pick up some crumbs in a Local Growth fund the chancellor announced - but of just £2bn, lower than expected. Gwyn Topham |
| Foreign Office | |
| Foreign and Commonwealth Office spending is to be be cut by 8% in 2015 but plans are proceeding to open more embassies in what the chancellor called the “emerging world” and focus British diplomacy on commercial opportunities in “growing markets” from Shanghai to Abuja. | |
| The FCO is expected to make £70m worth of savings by “co-locating” UK missions with Commonwealth and EU countries and continuing an existing programme to reduce UK-based-staff by 10% by 2015. | |
| Other savings are like to be found from programmes dealing with counter-terrorism, human rights and Arab partnerships. Another tried efficiency is the creation of regional “hubs” providing corporate services to a number of British missions in the same region. | |
| One bright spot is the announcement of £70m to be shared with UKTI to support global economic growth. “The extra money...recognises the FCO’s strong track record in this field,” a spokesperson said. “By supporting countries in making political and economic reforms we in turn support the UK’s prosperity.” | |
| William Hague was praised by Osborne as “the best foreign secretary in a generation” who had already demonstrated how to make pounds “go further.” | |
| It had been anticpated that the FCO might get off lighter than other departments due to claims around around conflict and peacekeeping. FCO spending is largely on salaries and buildings rather than programmes. Grand premises like the elegant British embassy in Paris give an impression of diplomats living lavishly at taxpayer’s expense — an image dismissed as a misleading carictaure by the FCO. Its budget was already tight after the last spending review in October 2010. It was cut then from £1.6bn in 2011-12 to £1.36bn in 2014/15. Ian Black and Neil Johnston | |
| Please note this article will continue to be updated throughout the day. Refresh the page for the latest additions. | Please note this article will continue to be updated throughout the day. Refresh the page for the latest additions. |