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

Ed Miliband to pledge rise in NHS spending

Labour leader Ed Miliband will pledge to increase spending on the NHS in his party conference speech, the BBC understands.

Read full article

More on This Story

More from Nick


This entry is now closed for comments

Jump to comments pagination
  • rate this

    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.

  • rate this

    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

    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

    Comment number 277.


    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

    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


Comments 5 of 280



  • Peaky Blinders publicity shotBrum do

    Why is the Birmingham accent so difficult to mimic?

  • Oliver CromwellA brief history

    The 900 year story behind the creation of a UK parliament

  • Image of Ankor Wat using lidarJungle Atlantis

    How lasers have revealed an ancient city beneath the forest

  • TheatreBard taste? Watch

    Are trailer videos on social media spoiling theatre?

  • A dog being dragged along the roadFlesh search

    An abused dog leads to an online hunt for the perpetrator

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.