Chancellor George Osborne has unveiled a range of cuts to government spending, aimed at bringing the UK's burgeoning deficit under control.
- "It is a hard road but it leads to a better future."
- "Today is the day when Britain steps back from the brink."
- "Tackling this deficit is unavoidable. The decisions about how we do it are not. There are choices - today we make them"
- The UK is paying £43bn a year in debt interest, Osborne says.
- "Debt interest payments will be lower by a total of £5bn over the course of this review."
- Osborne says debt interest payments will be lower by £1bn in 2012, £1.8bn in 2013 and £3bn in 2014.
- "It takes time to turn around the debt supertanker"
- Osborne says the biggest cuts will be in the department of debt management.
- Total public spending to be £740bn in 2014-15 - a real (post inflation) cut of just over 3%, Osborne says.
- "Spending review is about three principles: reform, fairness and growth."
- Next year, expenditure will be £651bn, the Chancellor says. It will rise steadily to £693bn by 2014/15.
- Whitehall savings, previously at £3bn, now has increased to £6bn, Osborne reveals.
- "Administrative budgets of every main government department will be cut by a third."
- Osborne says HM Treasury budget down 33% over 4 yrs.
- "There needs to be a dramatic shift in the balance of power from the central to the local."
- SCHRODERS QUICK VIEW: 490,000 public sector jobs expected to go, but we forecast between 1.7-2.2 million new private sector jobs by 2014.
- "A total of £2bn additional funding for social care to protect the most vulnerable."
- The Cabinet Office budget will be reduced by £55m by 2014/15, Osborne says.
- Foreign Office budget is cut by 24%.
- "Overseas development will reach 0.7% of national income in 2013." Note: Savings will be made on admin.
- WORLD FIRST ANALYSIS: UK 10 year gilt yields now happily below the 3% level, sterling spiking against USD, markets happy so far it seems.
- Chancellor says police spending to fall by 4% each year.
- "There is nothing fair about running huge budget deficits."
- "HMRC will be expected to find savings of 15%." Chancellor says HMRC to spend £900m to find missing £7bn in tax.
- Osborne to completely understands public's anger at "so poorly regulated" banks. He says he is going to introduce new levy.
- "We will seek additional £1.8bn of savings p.a. in public sector pensions by 2014-15; final salary scheme for MPs to end."
- The state pension age will reach 66 in 2020, four years earlier than planned, Osborne says.
- SCHRODERS QUICK VIEW: "Raising the state pension age to 66 is just the start to stabilising age related spending - more has to be done."
- DWP must find savings from the £200bn benefit bill on top of those identified in the Budget, Osborne says.
- "Benefit bills have soared by 45 per cent - this is totally unsustainable and unfair.
- On benefits: "The last government promised reform and flunked it, we will deliver."
- Welfare measures will save country £7 bil p.a. but low-income families with children protected from adverse effect, Chancellor says.
- "I have taken difficult decision to remove child benefit from families with higher rate taxpayer."
- "We will keep benefits for pensioners, free eye tests and prescriptions, bus passes, tv licenses and winter fuel."
- "Total health spending will rise each year over and above inflation."
- Total health spending to rise from £104bn this year to £114bn over the next four years.
- "For Equitable Life policy holders the fair amount to pay out in total is in region of £1.5bn."
- SCHRODERS QUICK VIEW: "NHS spending protected, though health costs tend to rise faster than inflation, which means squeezed budgets."
- Chancellor says £1bil set aside for Green Investment Bank, but he hopes more will be raised from private sector.
- Osborne says funding for adult apprenticeships will increase, helping extra 75,000 people by end of the Review period.
- "On-going provision of £9.3bn of funding for safe & successful Olympic and Paralympic Games in 2012."
- "Over next four years we will invest £30bn in transport projects, more than last four years."
- "We are saving money but we will still spend tens of billions on Britain's future infrastructure."
- "Real increase in money for schools for each of next four years - we will ensure cash funding per pupil does not fall."
- "Department cuts will be 19% over four years, rather than the 25% I anticipated."
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