Spending Review: key measures

Yesterday the Chancellor of the Exchequer George Osborne announced details of the cuts the coalition government intends to make to public spending to bring down the deficit which resulted from the recent world wide recession and banking crisis.

Against the backdrop of a growing campaign to defend public services from severe cuts the Chancellor announced the following:

• £81bn cut from public spending over four years
• 19% average departmental cuts
• £7bn extra welfare cuts, including changes to incapacity, housing benefit and tax credits Rise in state pension age brought forward
• 7% cut for local councils from April next year
• Permanent bank levy

Firmer details about the review can be found here.

The political news website Liberal Conspiracy has put together a short guide on the deficit and what it means.