Osborne to announce £2.5bn spending cuts today
Chancellor, George Osborne, will today set out how he will make cuts of £2.5bn to benefit the UK economy, when he delivers his Budget at 12:30 GMT.
The chancellor has told cabinet colleagues that they will have to cut 2% of their departments’ spending over the next two years, saving billions of pounds.
The money will go to infrastructure and building projects, designed to boost growth and create jobs.
The UK economy had shown a rise after the 2012 London Olympics but then shrank in the last quarter of the year, losing it’s triple A credit rating.
The government has been under increasing pressure since over its economic strategy.
Mr Osborne will start speaking in the House of Commons straight after the half hour Prime Minister’s Questions, which starts at noon.
In a message on the micro-blogging website Twitter, Mr Osborne said the Budget would “tackle the economy’s problems head on” and help “those who want to work hard & get on”.
Health, schools and aid protected
The budgets for health, schools and overseas aid will be unaffected by the cuts while local government and police budgets will be protected for the first year. But, other government departments will be told to deliver a further 1% cut to their day-to-day budgets in both 2013-14 and 2014-15.
The move has been made possible by under-spending by government departments this year.
As well as additional cuts, Mr Osborne is also expected to set out the “spending envelope” – the total amount of spending available to departments – in the forthcoming Spending Review, which will take place on 26 June.