Chancellor George Osborne has announced details of the government’s 4-year public spending plans in the Spending Review.

Chancellor George Osborne has announced details of the government’s four-year public spending plans in the Spending Review.

In line with the government’s determination to tackle Britain’s deficit, the Cabinet Office has announced that it will reduce its core resource budget by 35% in real terms, from £280 million in 2010-11 to £200 million by 2014-15.

The Cabinet Office will also take on a range of new responsibilities which will mean that its resource budget will increase by 28 per cent.

Measures to manage the budget reduction will include reducing the use of consultants, streamlining back office services and reducing staff costs. The costs of providing support to the Prime Minister will also be reduced by 25%, through initiatives such as reducing travel costs and increasing energy efficiency.

The Cabinet Office will also take forward a number of ideas suggested under the Spending Challenge, including implementing new guidance on government travel policies.

Cabinet Office Minister Francis Maude said:

We have always said we will focus on cutting the deficit in a way that is fair by reducing cost in the centre to ensure essential front line services and the most vulnerable are protected.  In the Cabinet Office, the work led by the Efficiency and Reform Group, has already resulted in millions in efficiency savings, which will help to protect jobs on the front line and protect the services on which we most depend. 

“Our settlement shows that we are cutting the costs of government whilst driving forward an ambitious agenda. We will create the National Citizens Service and provide transition funding to help charities and voluntary groups take their place in the Big Society. As well as this, we are cutting red tape and opening up new opportunities for civil society through radical reform of the public services, driving forward the government’s transparency agenda and changing the way government does business.

Read more about the Spending Challenge on the Treasury website [external website]

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