This paper summarises the government’s spending reductions of June 2010.
The savings that the government announced in early June 2010 are considered to be ‘nothing’ compared with what will come in the autumn. Then, each secretary of state will begin outlining significant savings over the three years starting next April as part of the Comprehensive Spending Review of 2010.
Those figures are expected to dwarf this recent announcement, foreshadowing thousands of job losses and cuts in services.
But the government considers that a start has to be made somewhere, and Chancellor George Osborne MP has taken the first steps in rectifying what he called the ‘worst economic inheritance’ any government has been given in the history of the United Kingdom.
The sum of £6billion was pivotal to the election campaign although former Labour Prime Minister and Chancellor Gordon Brown MP warned that taking that much out of the economy would put the financial recovery of the United Kingdom in jeopardy. However, the new Chancellor George Osborne MP insists that the real threat would be in failing to act swiftly now.
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