British Chancellor George Osborne has unveiled plans for an immediate £6.25 billion cut in what he called 'wasteful' public spending. He insisted that the British government was 'getting on with the job' of tackling its budget deficit.
Official data last week showed that the UK deficit had hit £156.1 billion in 2009/2010, or 11.1% of gross domestic product (GDP). That was lower than the previous estimate of £163.4 billion - but still a record high level.
The Chancellor said the reductions would be made while maintaining 'frontline' services in key areas such as the National Health Service. He also announced that schools spending would be protected.
Some £500m will be 'recycled' to boost employment and skills, and the rest will be used to cut the Government's debt.
Mr Osborne said the savings would include more than £1 billion of 'discretionary' spending such as consultancy and travel and nearly £2 billion from IT programmes, suppliers and property. More than £700m will be saved by 'restraining recruitment' and cutting quangos.
The savings were based on 'strong economic advice' from the Bank of England and the Treasury in favour of 'early action to deal with our debt', the Chancellor said. He said it reflected a 'decisive shift' around the world towards deficit reduction as a priority.
