Osborne Tells Departments To Prepare For Cuts

George Osborne has warned Government ministers they will need to deliver "more for less" - as the Treasury aims to cut spending by up to 40% in the next four years.

Launching the 2015 Spending Review, the Chancellor unveiled plans for unprotected departments to achieve savings of between 25% and 40% by 2020.

Budgets for schools, international aid, defence and the NHS have been ring fenced, which means deeper cuts could be implemented in other areas.

As part of the measures, Mr Osborne wants Government departments to devise plans to sell off billions of pounds worth of land, and other public assets, as part of a drive to save £20bn and eliminate the deficit by the end of the current parliament.

Mr Osborne has asked Whitehall departments to be "bold and imaginative" in their proposals, as he published a document pointing out that the Ministry of Defence alone owns about 1% of all UK land.

The Government sold assets worth £1.7bn in the last parliament - but Whitehall still owns land and property worth £300bn.

Mr Osborne has warned that Britain is still borrowing £1 for every £10 spent - and that national debt is still at its highest level for 50 years.

The planned £20bn in savings follows the £12bn in welfare cuts and £5bn from tackling tax avoidance announced in the Budget earlier this month.

The Spending Review report will be published on 25 November after all the departments affected have submitted their proposals.

Mr Osborne said: "This Spending Review is the next step in our plan to eliminate the deficit, run a surplus and ensure Britain lives within its means.

"We'll invest in our priorities like the NHS and national security. Elsewhere in government, departments will have to find significant savings through efficiencies and by devolving power, so people have a greater say over the issues that affect them and their communities. We'll deliver more with less."

The Chancellor confirmed that both NHS spending would be protected and the Budget commitment to increase funding by £10bn in real terms by 2020/21.

Shadow chancellor Chris Leslie has accused Mr Osborne of failing to devise a plan for "sensible savings".

He added: "Britain's public services need a coherent plan to balance the books and put productivity first, not a Chancellor who chops and changes from month to month, ditching manifesto commitments on childcare, rail electrification and elderly social care."