Spending Review 2010

by admin on November 4th, 2010

Finances set between 2011 and 2015 based on government figures

Current spending includes items such as salaries, hospital medicines, and school text books. Capital spending includes assets such as school buildings, roads and bridges.

Business, Innovation and Skills
Annual budget:
£21.2bn
Sending Review 2010 cut: Current spending down 25 per cent; capital spending down 52 per cent

Administration costs to be cut by £400m with 24 quangos being disbanded. Train to Gain programme to cease. University teaching budget to be cut by 40 per cent and further education budget to fall by 25 per cent. The science budget to be frozen – in cash terms – rather than cut as had been feared. Funding for 75,000 adult apprenticeships a year.

Cabinet Office
Annual budget:
£2.6bn
Sending Review 2010 cut: Current spending up 28 per cent; capital spending down 28 per cent.

Support for citizenship and “big society” projects. Cabinet Office officials to move into Treasury. Civil List cash funding for Royal Household to be frozen next year. New system of funding for Royal Household from 2013.

Communities and Local Government
Annual budget:
£33.6bn
Sending Review 2010 cut: Local Government – current spending down 27 per cent; capital spending down 100 per cent: Communities – current spending down 51 per cent; capital spending down 74 per cent

Councils will see a 7.1 per cent annual fall in their budgets. But ring-fencing of local authority revenue grants will end and councils will have freedom to borrow against their assets. Funding for social housing to be cut by more than 60 per cent, with new tenants having to pay higher rents. But the government hopes these changes will free up funds to build 150,000 new affordable homes over the next four years.

Culture, Media and Sport
Annual budget:
£2bn
Sending Review 2010 cut: Current spending down 24 per cent; capital spending down 32 per cent

Administration costs to be cut 41 per cent while core arts programmes will see a 15 per cent fall in funding. Free museum entry to remain in place. BBC licence fee to be frozen for next six years. Corporation will also fund World Service and BBC Monitoring. Adds up to equivalent of 16 per cent savings over the period.

Defence
Annual budget:
£46.1bn
Sending Review 2010 cut: Current spending down 7.5 per cent; capital spending down 7.5 per cent

The Royal Air Force and Royal Navy will lose 5,000 jobs each, the Army 7,000 and the Ministry of Defence 25,000 civilian staff. The Harrier jump jets and the Ark Royal aircraft carrier are being taken out of service while the planned Nimrod spy planes will be cancelled. Key spending decision on Trident to be delayed until 2016.

Education
Annual budget:
£57.6bn
Sending Review 2010 cut: Current spending down 3.4 per cent; capital spending down 60 per cent

Five quangos to be abolished. But direct funding to schools in England is to be protected. Their budget will rise 0.1 per cent in real terms each year, taking funding from £35bn to £39bn. But spending on school buildings to fall 60 per cent. Confirmed £2.5bn “pupil premium” for teaching for disadvantaged pupils. Educational Maintenance Allowances to be replaced. Sure Start budget to be protected in cash terms.

Energy and Climate Change
Annual budget:
£3.1bn
Sending Review 2010 cut: Current spending down 18 per cent; capital spending up 41 per cent

Plan for tidal barrage on the Severn estuary cancelled. But £200m funding for wind power development and £1bn for green investment bank.

Environment, Food and Rural Affairs
Annual budget:
£2.9bn
Sending Review 2010 cut: Current spending down 29 per cent; capital spending down 34 per cent. Investment to continue in flood defences – £2bn over period to 2015.

Foreign Office
Annual budget:
£2.2bn
Sending Review 2010 cut: Current spending down 24 per cent; Capital spending down 55 per cent. Number of Whitehall-based diplomats reduced.

Health
Annual budget:
£106.4bn
Sending Review 2010 cut: Current spending up 1.3 per cent; capital spending down 17 per cent

The NHS in England budget to increase by 0.4 per cent over the next four years. New cancer drug fund to be provided. But £20bn in efficiency and productivity savings sought in NHS by the end of the parliament. An extra £2bn for social care by 2014/15.

Home Office
Annual budget:
£10.2bn
Sending Review 2010 cut: Current spending down 23 per cent; capital spending down 49 per cent

Police budget cut by 4 per cent a year, focused on bureaucracy rather than manpower. Aim to maintain “visibility and availability” of officers on beat. UK Border Agency budget to fall 20 per cent. Counter-intelligence budget to fall 10 per cent.

International Development
Annual budget:
£7.7bn
Sending Review 2010 cut: Current spending up 36 per cent; capital spending up 20 per cent

The overseas aid budget is to be protected from cuts but not the department’s other costs. Budget to rise to £11.6bn over four years to meet UN aid commitment. But aid to China and Russia is to stop and there will be a reduction in administration costs.

Justice
Annual budget:
£9.7bn
Sending Review 2010 cut: Current spending down 23 per cent; capital spending down 50 per cent

Plan for new 1,500-place prison to be cancelled. 3,000 fewer prison places expected by 2015. £1.3bn capital investment in prison estate.

Northern Ireland/Scotland/Wales
Annual budget:
£55.5bn
Sending Review 2010 cut: Scotland’s block grant to fall by 6.8 per cent by 2014/5. Central funding for Wales is to be cut by 7.5 per cent – the Welsh Assembly Government says its budget will be cut by £1.8bn in real terms over four years. Northern Ireland funding to be reduced by 6.9 per cent over four years.

Transport
Annual budget:
£13.6bn
Sending Review 2010 cut: Current spending down 21 per cent; capital spending down 11 per cent

£30bn set aside for capital spending, including £500m for Tyne and Wear Metro and Tees Valley bus network. Crossrail project to go ahead in London. Rise in regulated cap on rail fares to 3 per cent above inflation for three years from 2012.

Treasury
Annual budget:
£4.4bn
Sending Review 2010 cut: Current spending to be cut by 33 per cent, capital spending to be cut by 30 per cent.

Bank levy to be made permanent. £900m to target tax evasion. £1.5bn in compensation to Equitable Life policyholders after it’s near collapse. 15 per cent cut in funding for Revenue and Customs.

Work and Pensions
Annual budget:
£9bn in departmental spending
Separate welfare and pensions budget: £192bn

The State pension age for men is to start rising from 65 in 2018 – six years earlier than planned – and reaching 66 by 2020. Rise in retirement age for women to accelerate, also reaching 66 by 2020. The measures combined will save £5bn a year. Reform of public sector pensions to save £1.8bn by 2015, with employees likely to contribute more. Winter fuel allowance, free bus passes and TV licences for 75-year-olds protected. Cuts to child benefit for higher rate taxpayers to generate £2.5bn. £2bn investment in new universal credit. Weekly child element on child tax credit to rise by £30 in 2012 and £50 by 2012.

Sending Review 2010 cut: A further £7bn in welfare savings planned on top of £11bn already announced. A new 12-month time limit on the employment and support allowance could see an estimated 200,000 claimants moved onto jobseekers allowance and see their support reduced. Proposed 10 per cent cut in council tax benefit budget. Under-35s only able to claim housing benefit for a room rather than a whole property. Maximum savings award in pension credit to be frozen for four years. Increased working hours threshold for working tax credits for couples with children. New total benefits cap per family.

From → Financial News

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