Feeds

Osborne details painful cuts for UK

Gideon publishes his Bible

Choosing a cloud hosting partner with confidence

After months of phoney war, George Osborne has detailed the coalition's battle plan to beat Britain's £109bn deficit, confirming hundreds of thousands of casualties across the public sector.

The Chancellor also announced sweeping reforms to the welfare system, saying "fairness" is the government's guiding principle.

Osborne announced:

  • A 490,000 reduction in civil service jobs over four years, mostly by not filling vacancies, but "there will be some redundancies".
  • Total Royal household spending cut by 14 per cent by 2014.
  • Cuts to central funding of councils of 7.1 per cent per year for four years.
  • Higher rents for new social housing tenants.
  • A 24 per cent cut in the Foreign Office budget over four years.
  • Police spending cut by four per cent per year over four years.
  • Counter-terrorism and intelligence budgets protected.
  • Savings on Home Office and Ministry of justice budgets of six per cent per year, with a plans for a new prison suspended.
  • Cuts to legal aid.
  • Plan to extract "maximum sustainable tax revenues" from banks, including permanent levy.
  • An extra £900m to be spent pursuing tax evaders.
  • State pension age for men and women to reach 66 by 2020.
  • Higher employee contributions to public service pensions.
  • All working age benefits and tax credits replaced with a single payment.
  • New restrictions on housing and council tax benefits to save £7bn per year, on top of £11bn savings already announced.
  • Child benefit withdrawn from higher rate taxpayers, as previously announced.
  • Pensioners' benefits maintained.
  • NHS protected but will make £20bn savings, to be reinvested in health.
  • A 50 per cent increase in apprenticeship funding.
  • Science budget protected at £4.6bn per year.
  • Up to £1bn to be invested in a carbon capture pilot project.
  • BBC World Service to be funded from the licence fee rather than the Foreign Office.
  • Licence fee frozen for the next six years.
  • Cap on train fare increased, raised to inflation plus three per cent.
  • School resources protected.

"The decisions we have taken today bring sanity to our public finances," said Osborne.

"We've taken our country back from the brink of bankruptcy."

The average savings in departmental budgets will be 19 per cent, lower than the 25 per cent anticipated in June's emergency budget.

The full Spending Review is here. ®

Security for virtualized datacentres

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.