Whitehall departments agree to 30 per cent spending cuts

Paul Snell is managing editor at Supply Management
posted by Paul Snell
9 November 2015

Four UK government departments have agreed to cut their budgets by 30 per cent by 2020 as their contribution the upcoming spending review.

The Department for Transport, Department for Environment, Food and Rural Affairs, Department for Communities and Local Government and the Treasury will cut resource (day to day) spending by almost a third over the next four years.

Revealing the settlements in a speech in London today, chancellor George Osborne said: “These savings will be achieved by a combination of further efficiencies in departments, closing low value programmes, and focusing on our priorities as a country. These provisional settlements apply to the day to day resource spending of the central departments – they are not the capital budgets of these departments.”

In July, the chancellor asked departments to come up with plans for two separate scenarios, savings of 25 per cent or 40 per cent by 2019-20.

In the same speech, the chancellor also announced the construction of nine new prisons, five of which will be built by 2020 with the rest to follow. The government estimated these new facilities will save £80 million in operating costs.

Osborne added: “This will save money, reform an outdated public service and create opportunity by boosting construction jobs and offering more people homes to buy.”

The announcement of the cuts to other central government departments will be given in the spending review on 25 November.

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