Everyone knew the big cuts were coming. In the preceding days, the media dubbed it as the next ‘Black Wednesday’. Yesterday, Chancellor George Osborne announced the four-year Spending Review – and, as expected, the public sector suffered.
Here are the main points you need to know:
- Nearly half a million public sector jobs are likely to be lost;
- The retirement age will go up a year – from 65 to 66 – by 2020;
- There will be £7 billion in additional welfare budget cuts, affecting incapacity benefit claimants, child benefit claimants, Jobseeker’s Allowance, housing benefit, council tax benefit, pension credit and family tax credits;
- Bank levy will become permanent;
- The structural deficit is to be eliminated in five years;
- Education budget is protected, while social care and NHS budgets rise.
The individual budget of each government department was scrutinised closely, resulting in sharp losses across the board. However, Mr Osborne claimed that the 19 per cent average departmental budget cuts were not as bad as previously expected.
The Institute for Fiscal Studies (IFS) has already spoken out against the cuts, and is due to provide a thorough analysis shortly. Unsurprisingly, Labour has also publically criticised the Coalition Government’s plans.
Have you been affected by the Spending Review? Are you worried about your job? Please leave your comments below.
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