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Spending Review 2010

Summary: The Spending Review sets out how the Government aims to carry out Britain's deficit reduction plan.

The HM Treasury explained, "This is an urgent priority to secure economic stability at a time of continuing uncertainty in the global economy and put Britain’s public services and welfare system on a sustainable long term footing. The Coalition Government inherited one of the most challenging fiscal positions in the world. Last year, Britain’s deficit was the largest in its peacetime history – the state borrowed one pound for every four it spent. The UK currently spends £43 billion on debt interest, which is more than it spends on schools in England. As international bodies such as the IMF and OECD have noted, reducing the deficit is a necessary precondition for sustained economic growth. Failure to take action now would put the recovery at risk and place an unfair burden on future generations.

The Spending Review makes choices. Particular focus has been given to reducing welfare costs and wasteful spending. This has enabled the Coalition Government to prioritise the NHS, schools, early years provision and the capital investments that support long term economic growth, setting the country on a new path towards long term prosperity and fairness. As a result of these choices, departmental budgets other than health and overseas aid will be cut by an average of 19 per cent over four years, the same pace as planned by the previous government."

To see how the Spending Review will affect the East Midlands, please click here

To see how the cuts affect different departments in graphics, please click here

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