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Osborne budget cuts

Chancellor George Osborne has reached an agreement with all his Cabinet colleagues over the extent of cuts to their department's budgets, the Treasury said.

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Osborne: Further defence job cuts likely

The Chancellor George Osborne Credit: REUTERS/Luke MacGregor

The Chancellor George Osborne has confirmed that there will be further job losses at the Ministry of Defence, after announcing that he had agreed the department's budget for the following year.

Speaking on the BBC's Andrew Marr programme, Mr Osborne said that the job cuts must fall within the department because the government would not "reduce the number of sailors, soldiers and airmen".

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