Spending round negotiations conclude


Negotiations over the next round of public spending cuts have concluded.

The last minister to settle was Business Secretary Vince Cable who agreed the latest round of cuts for his department in a phone call with the chief secretary to the Treasury this morning.

I understand that the business department will face slightly lower cuts - i.e. less than 8% - than some other Whitehall departments which are facing fresh cuts of over 10%.

Cable and his Lib Dem colleague Danny Alexander spoke at 10.15am just minutes after the chancellor revealed in a BBC interview that he had agreed a settlement with the Ministry of Defence.

The negotiations are said not to have been rancorous despite heavy briefings to this morning's papers suggesting that Cable would take his negotiations to the wire.

Negotiations over the education, transport and local government departments also had to be finalised today - in particular how the government's plans to spend £3bn extra on capital spending would be carved up between departments.

On Wednesday, the chancellor will use his Spending Review to announce £11.5bn worth of additional cuts to department budgets for 2015-16 - the year of the general election.

He will also announce the capital budgets for each Whitehall department.

However, on Thursday, his deputy, Danny Alexander will announce the detailed and long term plans for spending on roads, rail, housing and the like.

Labour has said that they will match the coalition's current spending totals, but would borrow up to £10bn more to spend on capital investment.

Nick Robinson Article written by Nick Robinson Nick Robinson Political editor

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  • rate this

    Comment number 240.

    the Socialists are a whole lot worse - Brown said "no taxes" along came stealth taxes, Brown said no boom and bust, and look where we are now Oh! and who raided the Pensions and sold all of our gold at rock bottom prices NOT the Tories. I nearly forgot the Illegal war in IRAQ. Do not make me sick!

  • rate this

    Comment number 239.

    Stick with the Tory Boys it will be alright on the night, what they say they will do - they do !

    The Tory boys came in to power saying they would do away with the Deficit by 2015
    Now they tell us the Deficit will be £120 billion
    If you think that is doing what you say will do you must be silly enough to vote Tory

  • rate this

    Comment number 238.

    #231 When BMW sells cars in the UK they pay tax on those sales

    For most foreign car manufacturers this is incorrect. In ost cases it would be BMW sells cars to UK dealerships which are not owned by BMW. BMW pays no corporation tax in UK on the profit. Dealer sells to UK customer. Dealer pays corporation tax in UK.

    Corporation tax has never been a tax based on where your customers are

  • rate this

    Comment number 237.

    @Alan (228) yes, it’s all so easy in your world, isn’t it?
    1) Move to a smaller house.. of course there are an endless supply of these, aren’t there? (council or private) especially after the Gov has just made loads of people need one! 2) Get a job Ditto, with bells on!

  • rate this

    Comment number 236.

    Why dont the economics editors and yrself Nick offer us, the public some stats on spending cuts in other countries. For example according to the IMF only ireland Greece and Iceland are cutting as much as we are and our finances are in a much more healthier state than theirs. What is Germany doing?

  • rate this

    Comment number 235.

    Blackie 1947. Read the Tory manifesto for the last election. You'll find they have broken nearly every promise they made!
    Not saying Labour are any better, but please get your head out of the sand and accept, they're all a bunch of lying so & so's who will promise us anything if we vote for them but will then fail to deliver.

  • rate this

    Comment number 234.

    I would not consider anything a churchman had to say to be relevant to anything as they believe in something that makes goldie locks appear to be a real person. As I would not believe anything Balls and Millipeed say to be anywhere near reality or the truth.
    Stick with the Tory Boys it will be alright on the night, what they say they will do - they do !

  • rate this

    Comment number 233.

    The lefty BBC
    Let’s see now
    Chris Patten the BBC chairman is a former Tory MP and chairman of the of the Tory party close friend of David Cameroon
    Nick Robison former President of the Tory’s at Cambridge
    Writer of this article
    The PM’s spin Doc former BBC news editor
    Boris's spin Doc that Git O’harry former political news reporter for you’ve guessed it the BBC

  • rate this

    Comment number 232.

    #225 Look at the long term figures for tax take in UK. Since 1960 UK economy delivers, on average, 35.5% of GDP in tax. Increasing taxes on rich significantly above current rates simply results in the rich paying less. Or have you researched the lessons of 1970s and 80s?

  • rate this

    Comment number 231.

    @207 Justin
    Companies who sell goods and services to UK based buyers should pay tax on those sales. When BMW sells cars in the UK they pay tax on those sales. If they are selling cars through UK based companies then those companies should pay corporation tax as well. The same should apply to Amazon etc.

  • rate this

    Comment number 230.

    This is news? Stage managed pantomime to let out bad news and make Osborne look tough. Funny how its usually Danny Alexander that draws the short straw to announce or argue normally but thinking the time is right up steps George trying to show he has slain a few dragons.

  • rate this

    Comment number 229.

    @226 So if Clegg had done a deal with Labour rather than the Tories, and brought a Lib-Lab coalition to power, would you also have regarded them as the “rightful Government of our country”? I bet you wouldn’t, then!
    I reckon you’d then be echoing the former Archbishop of Canterbury in questioning what electoral mandate do they possess!

  • rate this

    Comment number 228.

    #203. Tanglefoot

    "People are so quick to condemn people on benefits without knowing anything about their lives".

    The lady in your example needs to move a smaller house. That solves the housing benefit problem. If she then gets a job, perhaps that would solve the benefits problem altogether (at least for the taxpayer, anyway). Sorry if her way of life is spoiled by the need to earn a living!

  • rate this

    Comment number 227.

    To the people making useless uneducated comments - Please learn the difference between debt and deficit. Until then, please don't comment on what you obviously DO NOT understand.

  • rate this

    Comment number 226.

    It is about time we took a collective axe to the BBC, overpriced and under achieving - who is the CEO he must go first, get rid of all the Leftie Journo's that would be a good start. You have ABSLUTELY NOTHING to say about the rightful government of our country - please wake up and smell the coffee before it gets cold. The opposition are hopeless and yet you still support them.

  • rate this

    Comment number 225.

    Spending Review?

    The Tories (and that includes Labour) massive blind spot is that we have to raise taxes. (ON THE RICH!)

    Giving back multi-millions to the super-rich and wringing you hands that we cannot afford the widow's mite is morally and ethically indefensible.

    Cameron had the right idea when he spoke of nobody (in a company) being worth more than 20 times the lowest paid member of staff.

  • rate this

    Comment number 224.

    @tax your posts so far say awful lot more about you than they do the situation. I'm guessing you'd feel right at home in a Tory fat-cat cabinet, chewing the fat and planning your next round of cuts!

  • rate this

    Comment number 223.

    219/220/217 Ooooh look at them all! Now everyone who disagrees is in the Tea Party. You can tell when the lefties get rattled, they start trying to to call you a fascist. Long may it continue, we all know people are sick of being forced to pay for other's fecklessness; leaves the left planless though. Look at the panic! No debt, no mega-tax, how will we bribe our core vote?

  • rate this

    Comment number 222.

    219 "You really should stop reading and believing the Daily Mail, its starting to show up in your nonsensical worthless comments!" - Ha ha, Dr B is back with his own brand of sneering superciliousness. Daily Mail eh? That's original Dr B! Does everyone who disagrees with you read it?
    Help you come to terms with the fact some people might disagree with you? Worthless comments? Hypocrite!

  • rate this

    Comment number 221.

    Under the Coalition Government, net debt excluding bank bail-outs has continued to rise from 57.1pc of GDP when they took power to 71.8pc last year.
    To be fair, I don't have any confidence in any of the parties to actually manage the country's economy in a way that benefits most people.
    All the parties have vested interests and they're not in our interests.
    Unless you're a banker or big business.


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