Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/money/article/a442140
Spending Review: Which departments fared the worst?
The headline figure of 19% budget cuts conceals huge variety in how individual government departments have been treated.
Markets
by Richard Harris on Oct 21, 2010 at 08:07
The headline figure of 19% budget cuts conceals huge variety in how individual government departments have been treated.
These charts, based on Treasury data from the Spending Review document, shows that some departments have got off fairly lightly.
The first illustrates cumulative real growth (i.e. taking into account inflation) over the next four years, excluding capital expenditure. The big winner is the Department for International Development, which will see its total budget rise to £11.5 billion over the next four years – 0.7% of gross national income – from its current level of £7.9 billion.
On the other hand the Department for Communities and Local Government (CLG) is being decimated, with most of its quangos abolished and their functions moved elsewhere, and many powers being devolved to councils.
CLG aside, the Treasury is – perhaps wisely – leading from the front:

The second chart illustrates changes to capital expenditure. The Department for Transport has done well – infrastructure spending is seen as essential for growth, and as such £30 billion will be invested over the next four years.
Again, CLG is the big loser:

See our Spending Review page for more news and analysis.





7 comments so far. Why not have your say?
Anonymous 1 needed this 'off the record'
Oct 21, 2010 at 08:34
Why are they even bothering to keep the CLG why not just wind it up all together?and have rid of another labour creation so we can then go and waste millions on forming new departments and rebranding.
Opportunity missed on finally being able to modernise the MOD and cutting it back to our real place in the world and not some rose tinted neo imperialistic view.
report thisRC
Oct 21, 2010 at 11:05
Why are International Development & Cabinet Office exempt?
Both International Development & EU should be CUT COMPLETELY -
over 5-10 years these alone would pay off the debit!
report thisJames Keble
Oct 21, 2010 at 11:29
It is not a question of rose tinted imperialism. If we get attacked by any sizable enemy we shall need to feed ourselves.Noone who does not remember WW2 and how near we were to defeat by starvation as well as direct assault should talk about reducing our armed forces. Unfortunately our chancellor and prime minister were not even born. The opportunity they missed was to put a penny on income taxes and retain our already dangerously depletes armed forces.
It is not only our military safety that the defence cuts imperil. Whenever you cancel a project or cut a number of skilled workers, those skills are quickly lost, and so are the markets abroad that depend on them. You cannot sell high tech products to people if you cannot demonstrate usage of nearly similar products made by you. Yet we cannot compete with the cheap eastern
low and medium technology products which swamp our own domestic markets.
The world will not always continue to supply their products - including food - if we cannot give them products of real value in return.
Once skills are lost - we will never get them back, nor will we get the markets back.
report thisNemesis
Oct 21, 2010 at 11:55
cutting the HMRC staff numbers will only further increase tax evasion by the wealthy and corporate companies. This will then further reduce tax income.
A freedom of information request to HMRC has already stated that the HMRC estimates that the above group accounts for an annual $70 billion tax evasion. Vodafone alone was let off this year from $6billion of tax evasion .
report thisMike Greenland
Oct 21, 2010 at 18:14
Why has Scotland got off so lightly. They already have a bigger share of the cake and this make it even bigger still. We English will end up paying for even more Scottish waste.
report thisSmithy
Oct 21, 2010 at 18:32
There is only one department that earns money for the government - HMRC. The rest just spend it. If there was one department crying out for an INCREASE in its budget, it was HMRC. Increasing their resources would catch the skivers, dodgers and tax evaders that the rest of us are paying for.
report thiscolin macdermott
Oct 23, 2010 at 09:34
Hip Hooray for James Keble not living in the past but knowing what has gone on then and up until now should prompt the Gov and business to give things more thought.
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.