Cuts also to include 拢27m from Olympics Delivery Agency and 拢150m from Labour government鈥檚 housing pledge
UK chancellor George Osborne has announced that 拢1.7bn of contracts across all sectors will be delayed or stopped to achieve 拢6.2bn of savings.
In his breakdown of planned spending cuts revealed today, Osborne announced that savings over 2010/11 will include: 鈥溌�1.7bn from delaying and stopping contracts and projects, including immediate negotiations to achieve cost reductions from the major suppliers to government鈥�.
Further cuts include 拢27m from the Olympics Delivery Agency and 拢150m from the last government鈥檚 housing pledge.
Osborne offered a sweetener, however, by announcing that 拢500m of the savings will be reinvested. Around 拢170m will be spent on 4,000 social rented homes, which will start on site this year, 拢50m will go on capital investment at further education colleges, and 拢150m will be used to fund 50,000 new apprentices in small and medium-sized enterprises.
Other cuts include:
- 拢1.15bn in discretionary areas such as consultancy and travel costs
- 拢95m by reducing IT spend
- 拢170m from reductions in property costs
- 拢120m from freezing civil service recruitment
- 拢600m from cutting quangos
- 拢1.165bn by reducing grants to local authorities.
The cuts are in addition to the re-examination of all spending approvals since 1 January.
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