25 May 2010

UK govt slashes public spending

8:28 pm on 25 May 2010

The coalition British government has cut Stg 6.2 billion from public spending in an attempt to stave off a Greek-style debt crisis.

Chancellor George Osborne has announced cuts to quangos, spending on consultancy and big IT projects and a civil service recruitment freeze.

Cabinet ministers will no longer have personal cars and drivers, instead they've been told to take public transport, walk, or pool cars.

Of the cuts identified, Stg 500 million is to be reinvested in further education, apprenticeships and social housing, leaving a net spending cut of Stg 5.7 billion - less than 1% of total government spending.

The BBC reports most of the money saved this year will be used to reduce the deficit - which was Stg 156 billion in 2009-10.