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UK: Details of £6.2billion Government Cuts Announced

The British government has just announced details of £6.2 billion in savings it will make over the next financial year. The cuts are aimed at reducing a small part of the £156 billion government deficit.

Chief Secretary to the Treasury, The Rt Hon David Laws, MP detailed the following departmental savings:

We have found cuts totalling £6.243 billion – £243 million more than originally targeted.

As previously announced, the following departments will make efficiency savings of their own, but these will be recycled within their own budgets in 2010/11: Health, International Development, Defence. The savings in these departments are not included in the £6.243 billion.

In addition, as the Chancellor has already announced, because we have been effective in tackling waste and low value spending, we have been able to take the important decision to protect the budgets for Schools, Sure Start and spending on 16-19 year olds in 2010/11.

All other departments will make the following savings in 2010/11:

Department for Transport: £683 million

Communities and Local Government: £780 million

Local Government DEL: £405 million

Business: £836 million

Home Office: £367 million

Department for Education: £670 million

Ministry of Justice: £325 million

Law Officers’ Departments: £18 million

Foreign Office: £55 million

Department of Energy and Climate Change: £85 million

Environment, Food and Rural Affairs: £162 million

Culture, Media and Sport: £88 million

Work and Pensions: £535 million

Chancellor’s Departments: £451 million

Cabinet Office: £79 million

Devolved Administrations: £704 million

….We expect departments to make savings which include around:

– £1.15billion in cutting discretionary areas such as consultancy, advertising and travel costs.

– £1.7billion from delaying and stopping contracts and projects, including immediate negotiations to achieve cost reductions from the 70 major suppliers to government

– £600million from cutting the costs of quangos.

– £170million from reductions in property costs.

– £95million from IT

– And at least £120million from freezing Civil Service recruitment

In addition, any civil service pay above that of the Prime Minister will need to be signed off at the highest levels. This allows departments to set pay up to £142,000, but not beyond. Cabinet ministers will also need to pool their cars and drivers and all first class travel is banned.

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