U.K. Chancellor Slashes Spending

Arthi Gupta
24 May, 2010
New York City

U.K. Chancellor of the Exchequer George Osborne today detailed a

[R]4:00 PM London, 11:00 AM New York – U.K. Chancellor of the Exchequer George Osborne today detailed a £6.25 billion spending reduction plan for this year that aims to slash a record deficit without affecting the quality of the key frontline services.[/R]

U.K. Chancellor of the Exchequer George Osborne today detailed a £6.25 billion spending reduction plan for this year that aims to slash a record deficit without affecting the quality of the key frontline services.

Out of the planned £6.25 billion savings, £500 million of savings will be recycled and invested in apprenticeships, social housing and education. Osborne said the quality of key frontline public services will be protected.

The government will save £1.15 billion in discretionary areas like consultancy and travel cost and around £2 billion from IT programs. Among other things, £170 million from reductions in property costs and around £600 million from cutting the cost of quasi-autonomous non-governmental organization, otherwise called quangos, are planned.

The government plans to save at least £20 million from a recruitment freeze across the civil service for the rest of 2010-11. In addition, £1.165 billion of savings will be made in Local Government by reducing grants to Local Authorities to reflect their contribution to the £6.2 billion.

This financial year other departments will make the following savings. Among the main departments, the Department for Transport - £683 million, Business - £836 million, Communities and Local Government - £780 million, Education - £670 million and the Ministry of Justice - £325 million. But, the budgets for Schools, Sure Start and spending on 16-19 year olds in 2010/11 will be protected.

The government will pass legislation to end Child Trust Fund payments that is aimed to save £320 million in 2010/11, which is likely to rise to £520 million in 2011/12. There will be cuts in schemes which have low value for money, including in ""Train to Gain.""