1% cut to govt department budgets

The Treasury has confirmed that the Government will announce budget cuts of 1% to departments over the next two years.

Government to announce 1% cut to departmental budgets

The Treasury has confirmed that the government will announce budget cuts of 1% to departments over the next two years.

Making the announcement on Twitter the Treasury said:

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Resource budgets in government departments cut by around 1.1% over next two years #responsiblerecovery

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No cuts to capital, health, schools, aid, HMRC, local gov & security services. MoD given exceptional flexibility #responsiblerecovery

In another message the Treasury said: "Chancellor & Chief Sec have written to cabinet to inform them an extra £1bn a year savings will be made over next 3yrs."

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PM: Govt been discussing issue of energy bills 'for years'

Prime Minister David Cameron has told ITV News' Deputy Political Editor Chris Ship that the coalition's announced cut in energy bills was not in response to Labour's proposed energy price freeze.

Speaking in China, Mr Cameron said: "We have been discussing within the coalition the issue of energy bills for years now. It has taken me longer than I would have liked but I'm very glad we put in place at least some relief on the issue of energy bills."

Read more: Onshore wind farms subsidy cuts

Cameron rules out tax cuts until end of the decade

David Cameron has appeared to rule out tax cuts for high earners until the end of the decade in an interview with newspapers in China.

Speaking to the Daily Telegraph, the Prime Minister said it would have to wait until the deficit was “dealt with”.

David Cameron has been on a visit to China to discuss trade. Credit: Press Association

He said: “I’m a low-tax Tory, I believe in allowing people to keep more of their own money to spend as they choose; that’s a very important part of my political views, always has been and always will be.

“But I’m also a fiscal conservative. I believe the first duty of government is to safeguard our economy, and the economy isn’t safeguarded properly until you deal with your deficit.”