1. National

Treasury calls for 10% cuts

Danny Alexander, the Chief Secretary to the Treasury, has sent a letter to government departments demanding a 10% cut in spending 2015/16. The demand does not apply to protected spending such as on schools and healthcare.

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  1. Chris Ship

MoD facing cuts of 5%

The Ministry of Defence has been given special dispensation from the 10% cuts proposed by the Treasury, although they will have to fund a 5% cut in their resource budget in 2015/16 although that still means staff and overheads.

Danny Alexander has met all the Cabinet Secretaries in the last few days - but the letter formally setting out the governments position was only sent this afternoon.

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