Osborne: Cap welfare to spare departments from 'even faster cuts'

A total of £12bn should be cut from the welfare bill in the first two years of next Parliament, in order to spare government departments from “even faster cuts”, chancellor George Osborne has announced today.

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By Winnie.Agbonlahor

06 Jan 2014

In a speech setting out the Conservative Party’s long term economic plan, Osborne said that the cuts to welfare will have to be made in order to “reduce the deficit without even faster cuts to government departments, or big tax rises on people”.

Other elements of the five-point plan are to cap immigration, improve education, implement tax cuts for businesses and working people and cutting the deficit.

Overall, he said a total of £60bn in savings will have to be found over the next four years to achieve economic stability. To commit the government to reducing its debts, he wants to ask Parliament to vote on a new charter for budget responsibility this year.

His announcement follows his December Autumn Statement in which he stated that departments will lose £1bn out of their combined contingency reserves this financial year, and have their budgets cut by a total of £1bn each year until 2015-16.


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