At a glance: George Osborne’s first comprehensive spending review

This fiscal year current expenditure will be £637.3bn. In 2011-12, current spending will be £651.1bn, followed by £664.5bn in 2012-13, £678.6bn in 2013-14 and then £692.7bn in 2014-15.

The government will pay £43.3bn of gross government debt interest this fiscal year followed by £46.5bn in 2011-12, £52.4bn in 2012-13, £57.8bn in 2013-14 and then £63bn in 2014-15. Osborne includes £10bn from lower debt interest payments in the £83bn of spending cuts, partly accounted for by falls of £1bn in 2012, £1.8bn in 2013 and £3bn in 2014.

Capital spending will be £59.5bn this year, falling to £50.7bn in 2011-12, followed by £48.5bn in 2012-13, £45.6bn in 2013-14 and then £47.2bn in 2014-15. This is £2bn higher than Osborne set out in the June budget.

Total current public expenditure will be £696.8bn this year, £701.8bn in 2011-12, £713bn in 2012-13, £724.2bn in 2013-14 and £739.8bn in 2014-15. In real terms spending will be at its 2008 level.

£6bn in Whitehall savings found – rather than the £3bn planned in the budget. Achieved partly by cutting the administrative budgets of every main government department by a third – which will save £5.9bn a year by 2014-15.

The Office for Budget Responsibility forecasts that 490,000 public sector jobs will be lost over the next four years. Most will be through natural turnover. Around 1.5m private sector jobs will be created.

A permanent levy will be introduced, with the legislation published today.

All banks must have implemented the Code of Practice on Taxation by the end of November.

Measures forecast to save £7bn a year.

Universal tax credit to replace all working age benefits and tax credits will be introduced over the next two parliaments at a cost of £2bn over the course of this spending review.

Contributory Employment and Support Allowance will be limited to just one year for those in the Work Related Activity Group, saving £2bn in 2014-15.

The age threshold for the shared room rate in housing benefit will rise to 35 from 25, saving £215m in 2014-15.

Local authorities will have direct control over council tax benefit and will have the flexibility to manage council tax within a budget that will be reduced by 10 per cent from April 2013.

The mobility and care elements of the Disability Living Allowance will be aligned to generate savings of £490m by 2014-15.

The maximum Savings Credit award in Pension credit will be frozen for four years.

The basic and 30-hour tax credits will be frozen for three years.

Changes to Working Tax Credit rules means that couples with children must work 24 hours per week between them. The childcare element of the Working Tax Credit will return to its previous 70 per cent level.

Child benefit to be removed from families with a higher-rate taxpayer from January 2013, saving the exchequer £2.5bn in 2014-15.

The child element of the Child Tax Credit will rise by a further £30 in 2011-12 and £50 in 2013-14 above indexation, at a cost of £1.8bn between 2011 and 2015.

Universal benefits kept for pensioners and cold weather payments permanent.

Equitable Life victims will receive a total payout of £1.5bn, of which two-thirds will be found in this spending review period.

Its departmental expenditure limit (DEL) will be cut by £3bn between 2011-12 and 2014-15 with a cumulative real cut to its departmental programme and administration budgets of 25 per cent.

Train to Gain to be abolished.

An extra £250m by 2014-15 to be invested in adult apprenticeships.

The science budget will be protected at £4.6bn a year, while savings of £324m can be found through efficiency.

Public sector current expenditure will rise from £1.8bn in 2010-11 to £2.5bn in 2014-15. Its resource departmental budget will increase by 28 per cent but it will see its capital budget cut by 28 per cent.

The cabinet office administration budget will be reduced by £55m by 2014-15.

The Treasury will see its overall administration budget cut by 33 per cent.

Overall savings in funding to local councils of 7.1 per cent a year for four years but total DEL will be cut by £2.1bn to £3.2bn for communities and by £3.2bn to £22.9bn for local government.

Ring-fencing of all local government revenue grants will end from April 2011. The local government settlement target includes funding for the council tax freeze.

Grant funding for social care increased by an extra £1bn.

New social housing tenants will be offered intermediate rents at around 80 per cent of the market rent, close to double the 40 per cent usually charged. 150,000 affordable homes to be built over the next four years.

£6bn commitment over four years to the Supporting People programme.

The ministry of defence’s budget will be cut to £33.5bn in 2014-15. Resource DEL will rise to £34.2bn by 2014-15 from £33.2bn in 2011-12. Capital DEL and Resource DEL will be cut by a cumulative real 7.5 per cent.

The government will provide resources to fund British forces in Afghanistan.

Total DEL will rise from £56.1bn in 2011-12 to £57.2bn in 2014-15. Capital DEL will suffer a cumulative real cut of 60 per cent by 2014-15 while resource DEL will only fall by one per cent per year.

The schools budget will rise to £39bn from £35bn.

Introduction of a £2.5bn pupil premium to support the education of disadvantaged children and a funded increase in school places for 16 to 19 year-olds. Increase in the entitlement of free education to three and four-year-olds to 15 hours a week.

There will also be 15 hours of free early education and care to all disadvantaged two-year-olds.


£15.8bn to be spent on maintaining, rebuilding and refurbishing schools.

Total DEL to rise to £3.7bn from £3bn but resource DEL to be cut by 18 per cent in real terms. Capital DEL will rise by a real 40 per cent.

£200m to be invested in the development of offshore wind technology and manufacturing at port sites.


Up to £1bn for one of the world’s first commercial scale carbon capture and storage demonstrations on an electricity generation plant.

£1bn put by businesses into the Carbon Reduction Commitment (CRC) energy efficiency scheme will go straight to the government. A large stealth tax hike.

The departmental budget will be cut by 24 per cent over the four-year period by slashing the number of Whitehall-based diplomats and back office functions.

The only area which will see a real-terms increase. By 2014-15, £114bn will be spent on healthcare.

Aim to save £20bn a year by 2014-15 by raising efficiency and productivity.

£1bn will be diverted from the NHS to social care. Creation of a new cancer drug fund while spending on health research will be protected.

home officel Overall, savings of an average of six per cent per year will be found. Overall resource spending to be cut by 23 per cent in real terms by 2014-15 and capital spending cut by 49 per cent in real terms.

Spending on police will fall by four per cent each year by cutting bureaucracy.

£1.3bn to maintain the existing prison estate and fund essential new-build projects but plans for a new 1,500-place prison have been deferred.

The departmental budget will rise to £11.5bn over the next four years. It will see a 20 per cent rise in capital DEL and 37 per cent increase in resource DEL. Overseas development assistance will reach 0.4 per cent of GNI in 2013.

The budget will reach £7.3bn by the end of the four-year period – an average saving of six per cent per year.

£1.3bn to maintain the existing prison estate and fund essential new-build projects but plans for a new 1,500-place prison have been deferred.

The law officers department will cut its budget by 24 per cent over the period and the Crown Prosecution Service will reduce its cost base.

The total budget will fall by £1bn between 2011-12 and 2014-15. Capital DEL will fall by 11 per cent and resource DEL by 21 per cent.

£30bn to be invested in projects over the next four years, of which £14bn will fund railway maintenance and investment.

The cap on regulated rail fares will rise to RPI plus three per cent for three years from 2012.

Crossrail and Thameslink will both go ahead and key Tube lines will be upgraded.

The M25 will be widened at 10 different junctions and there will be increases to the charges on Dartford Crossing.

The London congestion charge will rise to £10 from January and the Boris Bike scheme will be extended eastwards.

Budget reduced to £1.1bn and administrative costs cut by 41 per cent.

The BBC licence fee will be frozen for six years. The BBC will also have to fund the BBC World Service and BBC Monitor as well as part-fund S4C, saving the exchequer £340m by 2014-15.
devolved nations
Scotland’s budget cut by 6.8 per cent in real terms; Wales’ to be cut by 7.5 per cent in real terms over four years; Northern Ireland’s cut by 6.9 per cent in real terms over four years.

State pension age for both men and women will rise to 66 by 2020, four years earlier than planned.

Public sector pension contributions will be staggered and progressive but no detailed decisions will be taken before the full commission report in the spring.

The government will seek an extra £1.8bn of savings per year in the cost of public sector pensions by 2014-15.

The budget of HM Revenue & Customs will have to find resource DEL savings of 15 per cent while capital DEL will fall by 44 per cent.

£900m will be spent to target tax evasion and fraud, expected to raise £7bn.

A one-year cash freeze in the Civil List. Total royal household spending will fall by 14 per cent in 2012-13 while grants will be frozen in cash terms. An extra £1m will support the Diamond Jubilee costs.

After 2012-13, the royal household will get a new sovereign support state grant linked to a share of revenue from the crown estate