UK govt to cut spend up to 40%

2010-07-04 19:42

kalahari.com

London - Britain's coalition government has ordered many ministries to plan for spending cuts of up to 40%, far greater than announced in an emergency budget, the finance ministry said on Saturday.

As Britain bids to slash a record budget deficit, departments had been warned to expect spending cuts of about 25%, but many ministries have now been asked to identify where cuts of 40% could be made.

It is the latest step in laying the ground for a spending review to be published in October which is expected to be the toughest since World War II.

The newly created Office for Budget Responsibility has forecast that 600 000 public sector jobs will be lost as Prime Minister David Cameron's Conservative-Liberal Democrat government grapples with the deficit.

Chancellor of the Exchequer George Osborne said last month that the defence and education ministries would receive favourable treatment, but they have now been told to assess the potential impact of cuts of 10% and 20%.

They only departments to escape any cuts will be health and international development, whose funding is "ring-fenced" during the current parliament term.

Record budget deficit

A Treasury spokesperson said: "We are determined to tackle the record budget deficit in order to keep rates lower for longer, protect jobs, and maintain the quality of essential public services.

"The Cabinet has been briefed on the planning assumptions that their departments should use for the initial phase of the spending review.

"These planning assumptions are not final settlements, and do not commit the Treasury or departments to final settlements.

"These assumptions will be negotiated so that we both tackle the deficit and support the freer, fairer and more responsible Britain we want to see."

- SAPA

Read more on:    uk
NEXT ON NEWS24X

Read News24’s Comments Policy

 

Inside News24

 
 

ANC set for two-thirds majority - poll

The ANC is on course to win nearly a two-thirds majority in 7 May elections, a poll has showed, confounding analysts who had predicted a fall in support for the ruling party.

 
 

Latest elections multimedia

Why Jack Parow wants you to vote on 7 May
The ad the SABC doesn't want to air
Elections 2014 in one cartoon
This year's election posters
 
Traffic
Lottery
 
  • Thursday Sir Lowry's Pass - 05:35 AM
    Road name: Old Sir Lowrys Pass Road
    TRAFFIC LIGHTS not working at Bezweni Road
  • Thursday Cape Town - 05:35 AM
    Road name: Buitengracht Street
    TRAFFIC LIGHTS not working at Waterkant Street
 
More traffic reports...
 

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Escape winter, head to Mauritius

Escape winter by spending 7 nights in Mauritius' tropical bliss from R13 215 per person sharing. Includes return flights, airport transfers and accommodation. Book now!

Kalahari.com - shop online today

Get many eggs in one basket!

Gaming bundles: 2 Super Hits games for R99, 3 Disney games for R99 and more + exclusive accessory bundles only available on kalahari.com. While stocks last. Shop now!

25% off bestselling books!

The Real Meal Revolution by Tim Noakes, Jeffrey Archer’s Be Careful What You Wish for, Man’s Search for Meaning by Victor E. Frank and many more titles. Shop now!

Up to 25% off electronics

Buy top electronics and save up to 25%. Such as kalahari.com’s 1# selling product the gobii eReader, Patriot X Porter flash drive, Asus Nexus 7” 3G tablet, Samsung Galaxy SIII, Lenovo G580 Notebook and many more. Shop now!

DStv HD PVR Decoder now R949

The DStv HD PVR Decoder has further revolutionised the television experience with lifelike viewing, sharper images, more vibrant colours and precision picture quality. Now R949, save R550. Offer valid while stocks last. Shop now!

Up to 30% off appliances & homeware

Save up to 30% on appliances and homeware this Easter! Offer valid while stocks last. Shop now.

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Apple iPad 3 Black 64GB 9.7" Tablet With WiFi & 4G

Retina Display Finally the incredible Retina display technology from the iPhone...

From R7699.00

I'm shopping for:

Horoscopes
Aquarius
Aquarius

You may be good at organising events but they do take their toll on your energy levels. You may need some time out today just to...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.