CPA's Michael Ankers.

Osborne outlines £6.2bn spending cuts...

Published:  25 May, 2010

LONDON: Chancellor George Osborne outlined plans to cut 'wasteful spending', saying "urgent action" was necessary to address the budget deficit.

Of the £6.2bn of cuts identified, £500m is to be reinvested in further education, apprenticeships and social housing, leaving a net spending cut of £5.7bn.

The savings, according to the Government, will break down as £1.15bn in 'discretionary areas' like consultancy and travel costs, £95m through savings in IT spending, £1.7bn through delaying/stopping contracts and projects and renegotiating with suppliers

The biggest cuts by department are £683m at transport, £780m at Communities and Local Government, £836m at business, £670m at education and £325m Department for Justice

The devolved administrations in Scotland, Wales and Northern Ireland would have to save £704m but will have the option of deferring savings until the following year.

Local authorities will be expected to save £1.165bn.They are to be given more flexibility to find savings as government grants are removed.

...CPA demands clarity on construction spending cuts

Commenting on the Chancellor's announcement, Construction Products Association chief executive Michael Ankers said: "Although it is clear that government will need to address its public borrowing, it is critical that it provides clarity on where potential spending cuts may occur and ensures that spending cuts do not occur in those areas that are key to facilitating the economic recovery such as in transport infrastructure and energy supply.

"These cuts must not harm the UK's economic recovery or prolong the recession still being experienced by the construction sector," said Mr Ankers.

"Falls in spending by government in this industry could hinder recovery for the UK economy as a whole.

"The Association is pleased to see £170m for the delivery of otherwise unfunded social homes especially at a time when we are building fewer houses a year than any time since 1945, although this will be, in the main, financed from savings from the existing housing budget."

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