Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/money/article/a407965
Coalition announces £10.5bn of cuts ahead of budget
No blushes are spared as the government scraps free swimming for children, a visitors centre in Stonehenge and a £450 million hospital building project.
Markets
Not content to wait until next week's emergency budget the coalition has already begun announcing public spending cuts.
It yesterday announced some £10.5 billion of cuts including new hospitals, libraries and job creation schemes for young people. It did not spare the blushes of its most senior figures slashing an £80 million investment in the nuclear industry at a plant close to deputy prime minister Nick Clegg's Sheffield constituency.
The chief secretary of the Treasury Danny Alexander said that he would be reviewing 217 schemes that were agreed in the dying days of the Labour administration including highly politicised plans for free swimming for children and the elderly.
One of the biggest single projects to be axed was the £450 million North Tees and Hartlepool hospital building project. The government's £25 million investment in a visitors centre at Stonehenge - which had been included in Britain's 2012 Olympic bid - also went.
Labour responded aggressively to the cuts setting the scenes for its response to the emergency budget. Though it too had said a thorough spending review would be needed after the election it nonetheless criticised every line of the cuts.
The shadow chief secretary of the Treasury Liam Bryne - famous for leaving the 'there is no money left' memo to his successor- said: 'Both the country and the Liberal Democrat party beyond will be aghast this afternoon at your attack on jobs, your attack on construction workers, your attack on industries of the future and the cancellation of a hospital.'
The cuts are likely to form just part of the proposals announce in next week's budget.
Tools from Citywire Money
More about this:
More from us
Archive
Today's articles
- Overnight Markets: US stocks gain as Europe offsets China concern
- Asset allocation: where bonds fit in to the big picture
- The Expert View: Mothercare, Burberry and Moss Bros
- Friday Papers: Insults fly over troubled HP buyout
- Citywire Top Stocks Daily News Digest
- Market Blog: bargain hunters drive FTSE to strong finish
- Why ‘free’ banking is a dangerous myth
- Chart of the Day: an oil spike threat no longer





10 comments so far. Why not have your say?
mike head
Jun 18, 2010 at 09:41
Alexander - "boy wonder, sellin' BOGOF visits to the stately homes of Scotland one week, chief secretary to the treasury the next with cut affecting millions of people - another set of lunatics running the same asylum
report thisJack Mason
Jun 18, 2010 at 10:02
Mike, do you really think Alexander made all these decisions all on his own in the 2 months think you need to get reall. It's the other Lunatics that we just kicked out that got us to here. We are all going to have to take some pain
report thisGrumpy Old Man
Jun 18, 2010 at 10:14
Damn' typical of Labour,getting us in this mess and then complaining about cuts!
Liam'no money left' Byrne says it all really.Complete prat!
report thisIan Phillips
Jun 18, 2010 at 10:25
Uh? just a minute.....a £24m visitor centre at Stonehenge for the Olympics?? someone must have been taking the p**s with that one! Maybe they were going to build it a mile away so visiters had to run (on a special track) to get there.......anyway it's a bunch of stones in beautiful countryside that you can see from the road!.........of course cancel it, typical Looney-left
report thisIan
Jun 18, 2010 at 12:29
Just where does Liam Byrne think the money is going to come from if we do not implement cuts? He seemed to be aware that there is no money left so why is he critical of cuts? We cannot borrow for ever and it should end right now and the UK should get into the habit of living within its means. I am not willing to pay increased taxes to subsidise welfare bums and armies of civil servants who do little of value although it seems as though I will be obliged to for the foreseeable future to pay for the mess caused by New Labour.
report thisFoggiest
Jun 18, 2010 at 12:58
Short memories
Seems people forget that the US led us into the biggest recession ever that was only averted by the last government leading the UK and others out of it. Required massive spending (who would have lost most if the banks failed!) that was universally agreed as necessary, including by the LibDems and even, reluctantly, the Conservatives. We are now ConDem'ned to ignoramuses both in government and elsewhere with highly selective memories rewriting history.
Did you see Blanchflower's comments and other prominent economists warning about ConDem's spiral of debt? Massive cuts now leads to no growth, leads to more massive debt, leads to more massive cuts leads to longer no growth, leads....... Again it will be the middle classes that pay as always under the Tories.
report thisA jock strap
Jun 18, 2010 at 13:52
The Public Sector MUST take it share of the pain by:-
1. Removal of unfunded final salary pensions. After all Bigot Brown killed them off in the private sector by removing dividend tax relief on pension funds. Just how cynical was that.
2 MP's and Lords expenses to be means tested and made even less generous and even abolished for the Lords altogether. Plus attendance allowances and especially for MP's who claim salaries but never turn up. The "IRA" MP's that is Gerry Adams and co.
3.Cuts in health service pay and a massive cull of bureaucrats as recommended in the recent NHS report that was shelved!
4.Abolishen of paid sick leave for all civil servants as they abuse it so.
5. Long term unemployment benefits/social security pay to be axed. Cash for Work only schemes to replace it.
6. Abolishen of bonuses in state owned banks.
After all this is Austerity Britain.
report thisAnonymous 1 needed this 'off the record'
Jun 18, 2010 at 17:21
Why should anyone take a blind bit of notice from anybody connected to the previous Labour Government?
Never, as at any time before, has there been a need for a dose of reality about the actual dire straits Labour's legacy has left us all with.
Do gooders, politically correctnessers, public sector drones (not front liners), what a shambles.
Get real; as jock strap says, we are in real austerity Britain!
And Gordy Brown?..where he? Exactly where he should be - invisible and invisible.
report thisJeff of Sidcup
Jun 18, 2010 at 18:33
Maybe, just maybe we have a government that has the cohones actually to make the necessary cuts. Anyone who has seen a planning response from a local authority will know that the pen pushers have really taken over. If you want to see the true extent of our problem buy the Wednesday edition of the Guardian and look at the "Society" section and the ads for assorted jobsworths. It will make your hair stand on end.
report thisA jock strap
Jun 18, 2010 at 19:56
Good idea abolish the Groniad (Guardian) and all those who read it.
Job Done.
report thisleave a comment
Please sign in here or register here to comment. It is free to register and only takes a minute or two.