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'Wasteful' spending to be cut by £6.2bn

2010-05-24 137 Dailymotion

<p><br /> Recruitment freezes, IT programmes, consultancy and transport are among the areas being tackled to help cut the deficit.<br /> </p><p><br /> Chancellor George Osborne has been laying out the immediate plans which he says will save the country £6.25bn.<br /> </p><p><br /> Standing alongside his Lib Dem deputy at the Treasury, David Laws, he said the reductions would be made while maintaining "frontline" services in key areas like the NHS.<br /> </p><p><br /> Schools spending is also being protected along with funding for Sure Start programmes.<br /> </p><p><br /> Some £500 million will be "recycled" to boost employment and skills, and the rest will be used to cut the Government's debt.<br /> </p><p><br /> The savings were based on "strong economic advice" from the Bank of England and the Treasury in favour of "early action to deal with our debt", the Chancellor said.<br /> </p><p><br /> Mr Osborne said the savings would include:<br /> </p><p><br /> :: More than £1 billion of "discretionary" spending such as consultancy and travel;<br /> </p><p><br /> :: Nearly £2 billion from IT programmes, suppliers and property;<br /> </p><p><br /> :: Over £700 million from "restraining recruitment" and cutting quangos.<br /> </p><p><br /> :: More than £500 million from cutting "low-value spending".<br /> </p><p><br /> Referring to a note left by outgoing Labour chief secretary Liam Byrne for Mr Laws, Mr Osborne said: "It's all very well writing a letter telling us the money has run out; the real challenge is having an answer to that letter."<br /> </p><p><br /> He said his theme of "we're all in this together" meant "cutting wasteful spending while protecting the quality of key frontline public services we all depend on".<br /> </p>

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