Chancellor's spending review

Chancellor George Osborne unveils spending plans.

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Chancellor accused of widening the North / South divide

The Chancellor George Osborne has been accused of increasing the gap between the North and South as he announced a new round of cuts today, June 26.

In his Spending Review for 2015 he said he would slash the budgets for councils and the Scotland Office by 10 per cent.

But the health service, schools and international aid will not be cut, while there could be new funding for road and rail projects in our region.

Our Political Correspondent Paul Brand watched the Chancellor's statement:

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Where the Government has made savings

Public sector workers, benefit claimants and expat pensioners were hit as Chancellor George Osborne announced another round of austerity measures.

The Government will "continue to protect vital public services and overseas aid". Credit: Treasury
Money has been prioritised on transport, health and capital investment in science. Credit: Treasury
Savings have been made in the public sector, welfare and Whitehall. Credit: Treasury


Department funding councils facing biggest cuts

The Government has announced the department that funds councils is to get one of the biggest cuts in funding, which is likely to affect services right across the region.

Chancellor George Osborne confirmed the Communities and Local Government budget is being reduced by another 10 per cent.

It means councils like Sunderland must save another one £100 million.

The council proposes closing libraries and ending some free school bus services, which has been met with an angry reaction.

Chancellor reveals further job losses by 2016

Chancellor George Osborne reveals there will be further job losses by 2016. Credit: Rui Vieira/PA Wire/Press Association Images

The Chancellor has also revealed there will be further job losses by 2016. Around 144,000 more posts are expected to go across the UK. The announcement has been criticised by unions.

George Osborne did stress that for every job lost in the public sector over the last year, five more have been created by private firms.

There will also be a new seven-day wait before claiming unemployment benefits and all job seekers will be required to attend the job centre every week, rather than once a fortnight.

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Principles of spending plan: Reform, growth and fairness

The Chancellor has said there are "three principles to the Spending Round":

  • Reform: to get more from every pound we spend.
  • Growth: to give Britain the education, enterprise and economic infrastructure it needs to win the global race
  • Fairness: making sure we are all in it together by ensuring those with the broadest shoulders bear the largest burden and making sure that the unfairness of the something for nothing culture in our welfare system is changed.
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