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
    0

    Comment number 280.

    The public sector financial deficit cannot be reduced unless the big spending departments of social security, health and education are hit hard.
    I suspect less money would improve performance.
    Politicians need to start facing reality.
    Alan

  • rate this
    +1

    Comment number 279.

    Boss to employees "we are cutting costs by 20 % to survive". Employees to boss "ok, you are the boss". So what gives with all this negotiation clap trap. Does this man have no Kahoonas. Debt is going up up and up. No business can live on credit matey. George, it is time for you to act like the Boss

  • rate this
    0

    Comment number 278.

    these cuts don't even make a dent, and by 2015 we will have another 300 billion of debt by then. if the government it to pay back say £80 billion a year thats about £200 billion it needs to save every year average pay of a CS about 30k that's over 6 million jobs in the public sector need to go, to the private sector and not linked to any government out sourcing, snow balls chance I think.

  • rate this
    0

    Comment number 277.

    Malik

    Calm down dear,lib,Lab,Con have been blown away by the crisis and Ukip is the beneficiary.

    This doesn`t means mad fringe parties have answers,only that the electorate are both naive and want to punish the government.

  • rate this
    +2

    Comment number 276.

    Osbourn has been Telling LIES from day 1..Borrowing has Increased..The DEBT WE OWE HAS INCREASED...He will NEVER Admit that though...He Hopes you Will Believe all His LIES...Like ALL the Politicians who get in to Power they say One Thing and then Do the Opposite...LIBLABCON has Always Run in Charge of This Country..The TIME has Come for THEM ALL TO BE CHUCKED OUT..Unless you Want more of The SAME

  • rate this
    0

    Comment number 275.

    Capitalism remains in crisis.

    The value of assets in only maintained by printing money and debauching the currency for savers and workers whose incomes fall.The rich with piles of assets get richer ensuring future destablizization.

    All this attended by a chorus of fools.

  • rate this
    0

    Comment number 274.

    Stanilic/Justin

    Victims of the the myth.There`s no treatment but study and reflection.Lewis/;IFS gave context,and how can you balance the budget when the worlds banks are collapsing including your own

    Debt has increased by $100 billion,there`s no growth.The myth condemns Osborne to attacking the alleged source of the crisis in government spending,it was a collapse of private capital.

  • rate this
    0

    Comment number 273.

    17 hours ago, 47 Havoc blew his top and said, "Hang 'em all," Well mate, your post is still there and MI5 knows where you and all your aprovees live!

    Anyway, watch out for at least one schoolboy blunder from Georgie boy when his plans come out.

  • rate this
    +1

    Comment number 272.

    268.Up2snuff
    Your ire might be better directed at the Govt who have messed up the cuts, not dealt with inflation or reform of the tax system or rebalanced the economy.

    Private sector jobs up, public sector jobs down, several tax changes, what country are you in? There's no magic wand. Correcting 13 yrs of Gordon's messing about will take more than 1 term to sort.

  • rate this
    -1

    Comment number 271.

    The Coalition have deferred all the really tough tax and spend decisions until after the next general election.

    Maybe they are just paving the way for Labour to come back in.

  • rate this
    +2

    Comment number 270.

    @ 265 Mark.
    "Capitalism has failed". Which is why it survives and communism/socialism have disappeared into the black hole of history. It matters not what ideals are involved, in any system you will end up with inequality and that inequality will pass down the generations. If anyone can come up with a system that neutralises human greed and ambition would you please let us all know.

  • rate this
    +1

    Comment number 269.

    267.Up2snuff
    Not really, pretty much the same as in 2010.

    Err, Greece, Spain, Italy ??? China slowdown, Brazil slowdown. UK business needs someone to buy our goods and services and most major markets slowed more than anyone thought.

  • rate this
    -1

    Comment number 268.

    264.Jaw dropping truth
    Benefits over the last 3 years have increased not been cut Public-Sector have had increases
    ~
    That's the reality of inflation. Only low-paid PS workers have had incrs, even they are probably negative in real terms.

    Your ire might be better directed at the Govt who have messed up the cuts, not dealt with inflation or reform of the tax system or rebalanced the economy.

  • rate this
    0

    Comment number 267.

    @266 tr
    Many people at the time actually thought it was possible, circumstances have actually changed since.
    ~
    Not really, pretty much the same as in 2010.

    The cuts were possible, are still possible (and w/out so much pain if applied to non-essentials) but only if:
    1. The PM stops spending money here, there, everywhere, & 2. Govt Ministers accept all Depts have cuts.

  • rate this
    0

    Comment number 266.

    263.ovalball
    "Why did they say they would cut the deficit to Zero by 2015 if it was impossible"

    Many people at the time actually thought it was possible, circumstances have actually changed since.

    "Also it is quite strange how all sorts of outside influence are used as excuses for this government"

    and other governments, and usually correctly. We don't live in isolation.

  • rate this
    -1

    Comment number 265.

    Capilism has failed, over time it has gained far too many pulleys, levers and gears to hide its failings.
    The world has spent money it did not have and is now in debt.

    We need a better less complicated system that rewards the many and not just the few who know how to scam the system.

  • rate this
    +2

    Comment number 264.

    The Socialists and the Hard left on here moaning ! It is just typical when in reality the only people who are suffering are the hard working tax-payers. Benefits over the last 3 years have increased not been cut Public-Sector have had increases The only people who are feeling the pressure are the hard working private sector ! and still the slack-jawed Socialists screech ! what is wrong with them ?

  • rate this
    -1

    Comment number 263.

    248.therealist
    No, it just says the mess they inherited and the subsequent events in Europe and elsewhere made the job just about impossible.

    Why did they say they would cut the deficit to Zero by 2015 if it was impossible
    Also it is quite strange how all sorts of outside influence are used as excuses for this government
    And the world banking crisis was the last governments fault

  • rate this
    +1

    Comment number 262.

    So they have agreed a figure. Will they keep to it? Who knows, we don't even know what will be cut. Open the books let the public see precisely down to the last paper clip where the money goes and we'll sort it out for you.

  • rate this
    0

    Comment number 261.

    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!" - Delivered without irony apparently? You are as bad as each other, so polarised. Calling someone a "member of the Tea Party"/"Daily Mail" reader for not agreeing says a lot about you too.

 

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