Government Announces £6.25Billion Spending Cuts, With More to Come

June 2010

This paper summarises thegovernment’s spending reductions of June 2010.

The savings that the governmentannounced in early June 2010 are considered to be ‘nothing’ compared with whatwill come in the autumn. Then, each secretary of state will begin outliningsignificant savings over the three years starting next April as part of theComprehensive Spending Review of 2010.

Those figures are expected to dwarfthis recent announcement, foreshadowing thousands of job losses and cuts inservices.

But the government considers that astart has to be made somewhere, and Chancellor George Osborne MP has taken thefirst steps in rectifying what he called the ‘worst economic inheritance’ anygovernment has been given in the history of the United Kingdom.

The sum of £6billion was pivotal tothe election campaign although former Labour Prime Minister and ChancellorGordon Brown MP warned that taking that much out of the economy would put thefinancial recovery of the United Kingdom in jeopardy. However, the newChancellor George Osborne MP insists that the real threat would be in failingto act swiftly now.

For full briefing paper please clickhere.