Here are the seven key points of the coalition government's spending cuts for 2010-2011, set out by Chancellor George Osborne and Chief Secretary to the Treasury David Laws. CUTS BY TYPE • £1.15bn in "discretionary" areas such as consultancy and travel costs • £95m through savings in IT spending • £1.7bn will be saved in delaying or stopping government contracts and projects • Reductions in property costs will save £170m • More than £120m expected to be found through a freeze in civil service recruitment • £600m by cutting the cost of quangos • £520m will be saved through other low-value spending CUTS BY DEPARTMENT Dept business: £836m DCLG: £780m Dept Transport: £683m Education dept: £670m Dept work pensions: £535m Chancellor's Dept: £451m Local govnt: £405m Home Office: £367m Mins of Justice: £325m Devolved admins: £704m DEFRA: £162m Dept for Energy: £85m Culture dept: £88m Cabinet Office: £79m Foreign Office: £55m Law officers' dept: £18m Since taking up their jobs at the Treasury Mr Osborne and Mr Laws have had discussions with the secretaries of state of each department. They also sought advice from officials at the Treasury and Bank of England on whether these savings are viable. It is the coalition government's first move to tackle the UK's £156bn deficit, attempting to reduce any waste in Whitehall ahead of a spending review later in 2010. There will be more details as well - including on civil service pay - in an emergency Budget on 22 June. IN MORE DETAIL: EDUCATION The education department will have to make savings of £670m but Mr Osborne said that schools' funding, the Sure Start programme and spending on education for 16-19-year-olds would be protected - something that was not in the Conservatives' manifesto. The 20,000 extra university places promised by the Labour government will be reduced to 10,000. By closing the quango British Educational Communications and Technology Agency (Becta) the government hopes to save £80m. CHILD TRUST FUNDS There will be a reduction then end to Child Trust Funds, saving £320m, with payments being stopped altogether in January 2011. From then, provisions will be made for an extra £20m to provide respite care for disabled children. CIVIL SERVICE There will be a £190m saving through a freeze on non-frontline civil service recruitment. Any salary that is higher than the prime minister's own will have to be approved by Mr Laws. HEALTH, INTERNATIONAL DEVELOPMENT AND DEFENCE Frontline services in these departments will be protected. Any efficiency savings in these areas will be recycled within their own current budgets. LOCAL GOVERNMENT Local government is expected to make a contribution of £1.165bn through reductions to individual grants. Ring-fencing to end for more than £1.7bn of grants given to local authorities so they can make their own cuts. BUSINESS The biggest of all the departmental cuts will be at the Department of Business, Innovation and Skills, totalling £836m. TRANSPORT Spending at the Department of Transport will be reduced by £683m. By cutting grants to local authorities, the department will save £309m. Network Rail will have to find savings of £100m. In London, following discussions with Mayor Boris Johnson, £108m could be cut from Transport for London's grant. WORK AND PENSIONS The Department for Work and Pensions will make £535m of cuts. Of that, £200m will be saved through reduced IT projects and consultancy, marketing, travel and a recruitment freeze. The remaining £335m comes from measures such as winding down, then cutting altogether, the Future Jobs Fund which will save £290m. The department will also stop the £1,000 subsidy for employers to take on anyone who has been out of work for six months. GOVERNMENT MINISTERS Ministers will no longer have dedicated ministerial cars and will be expected to walk, use public transport or pooled cars where possible. DEVOLVED CUTS The savings for all three devolved administrations in Edinburgh, Cardiff and Belfast will be £704m. This is a gross total, not taking into account any reinvestments or recycled savings. In each case, the three can choose to defer the cuts until the next financial year. For Wales, the cuts will total £187m. However, after £24m is reinvested into the Welsh block grant, the actual figure will be £162.5m. The savings in Scotland are £375m but this will be reduced to £332.8m once £42.2m is reinvested via the Scottish block grant. Northern Ireland's gross cut is £142m which, after £14m is reinvested through the block grant system, will actually be £128m. WHO WILL OVERSEE THE CUTS? A new board, called the Efficiency and Reform Group, is being set up to oversee departmental cuts. It will be chaired jointly by Mr Laws and Cabinet Minister Francis Maude and include civil servants from across Whitehall.



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