Wednesday, 20 October 2010

Spending Review : Osborne wields spending axe

Chancellor George Osborne has unveiled the biggest UK spending cuts since World War II, with welfare, councils and police budgets all hit. The Chancellor confirmed that the bloodiest cuts since the Second World War will lead to 500,000 job losses in the public sector - almost one in 10 of the total.

Unveiling what one Government source described as a tsunami of grim news, Mr Osborne said: ‘It is a hard road but it will lead to a better future.

The main headlines in today spending review were;

* The Treasury cut by 33%

* Local Government cut by 27%

* The Home Office cut by 26%

* The Justice Department cut by 26%

* The Business Department cut by 25%

* The Culture Department cut by 24%

* Transport cut by 21%

* The Foreign Office budget will see savings of 24% through a sharp reduction in the number of Whitehall-based diplomats and back office functions.

* Proposals will be set out to replace all working-age benefits and tax credits with a single, simple Universal Credit.

* BBC to fund BBC World Service and BBC Monitor as well as part-funding S4C, saving the Treasury £340 million a year, with the license fee frozen for the next six years - equivalent to a 16% saving in the BBC budget over the period.