Spending Review: The Key Points

Spending Review: The Key Points

The main announcements from Chancellor George Osborne in his spending review for 2015/16 as outlined to MPs in the Commons:

WELFARE:

:: Reforms to include the 'welfare cap' set in Budget statement annually from April 2015 for four years, though state pension not included.

:: Jobseekers face new requirements to get benefits. Non-English speaking claimants must learn the language or risk cuts to payments.

:: New upfront work search system will require claimants to provide a CV, register for online job search and start looking for work before getting benefits.

:: Lone parents of three and four-year-olds to be required to attend job centres regularly and prepare for work.

:: Payment of winter fuel payments for people living abroad to be linked to a 'temperature test' from Autumn 2015 to ensure pensioners in hot countries do not get it.

JOBS & PAY:

:: Government workers to fall by extra 144,000 by 2015/16.

:: Ending automatic progression pay in public sector - though Armed Forces excluded. Pay rises limited to average of up to 1%.

INVESTMENT:

:: £50bn of capital investment in 2015/16, amounting to more than £300bn for infrastructure including broadband, science and schools by 2020. Promises the largest programme of investment in roads for 50 years and in railways since the Victorian age.

TAX:

:: HMRC resource budget cut by 5% but extra resources provided to tackle tax evasion raising a predicted £1bn-plus.

NHS:

:: NHS budget rises to £110bn for 2015/16. some £4.7bn capital spending in NHS.

EDUCATION:

:: Education budget increased to £53bn for spend on schools only. Pupil Premium extended to more children and 180 more Free Schools funded.

DEFENCE:

:: No reduction in numbers of soldiers, sailors or airmen, but cuts in civilian workforce.

:: Defence resource budget maintained at £24bn. Its equipment budget will be £14bn and will grow by 1% in real terms in following years.

TRANSPORT:

:: Government to "look at the case for" Crossrail 2 link from Wimbledon to Alexandra Palace in London and give mayor Boris Johnson almost £9bn of capital spending and additional financing power by 2020.

:: Transport to make 9% savings in day-to-day spending but receive largest boost of any department to its capital budget, which rises to £9.5bn - to be repeated every year to 2020.

LAW & ORDER:

:: Savings of 10% in justice department.

:: Police counter-terrorism budget will not be cut while there will be an increase of 3.4% in intelligence services budget.

KEY FIGURES:

:: A further £5bn of efficiency savings found in the latest spending round.

:: Total Government spending for 2015/16 will be £745bn.