Thursday, 28 March 2013

Ministers told to prepare for cuts of up to 10%


The Treasury has written to government departments warning most ministers they will have to cut up to 10% of their budgets for the year 2015/16.

Spending on health, schools and international aid will continue to be given protection.

Ministers are preparing for the spending review to be held on 26 June.

Chancellor George Osborne announced in last week's Budget speech that he wanted to cut another £11.5bn from public spending.

Firstly it should be clarified that the 10% figure isn’t final, but the Treasury’s opening offer for the negotiations to follow.

Also why is international aid being given special protection from the cuts, protecting health and schools is obvious but can we really afford to be giving away billions in aid, I don’t think so. Shouldn’t we get our finances in order first?  

Again it could all change but asking departments to cut 10% out of their budget is placing a huge burden on them, and will most likely result in high numbers of job losses.

George Osborne has been accused by many esteemed critics for cutting to deep to fast, so it will be interesting to see how they react to the news he plans to go even deeper.


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