Labour is planning a post-election Comprehensive Spending Review which will prove to be "the toughest we have had for 20 years", according to an interview with Chancellor Alistair Darling (external website) published in the Times on Saturday (9 January 2010). Darling also suggested that the 2010 Budget will be held prior to the 2010 general election, leading the Times to infer that we can expect Budget 2010 in March, followed by an election on 6 May 2010.
Darling used the interview to take a firm stance on the need for swingeing public spending cuts in order to balance the budget deficit. Darling stated:
We need to protect frontline services but it is absolutely essential to cut the public deficit. [...] The next spending review will be the toughest we have had for 20 years. [...] Many departments will have less money in the next few years. [The cuts] are utterly totally non-negotiable. [...] We are talking about something like a £57 billion reduction in the deficit through tax increases and spending cuts. It is a change of direction.
It is widely expected that the public spending cuts will have a significant impact on public sector pay and jobs. Darling has already announced in last month's Pre-Budget Report 2009 that the Government will cap public sector pay awards at 1% for 2011/2012 and 2012/2013.
The tone taken in Darling's interview marks an unusual twist in the build-up to the 2010 general election, the last possible date (external website) for which is Thursday 3 June 2010. Both Labour and the Conservatives are promising to cut back severely on public spending. The Times notes that "the parties mainly differ over timing", with Labour planning to pace its cuts, while the Conservatives are determined to make swift, deep cuts to public spending.
- UPDATE (Monday 15 February 2010): Budget 2010 confirmed for March Chancellor Alistair Darling has confirmed that the Budget 2010 will take place during March, although the exact date has not yet been announced.
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Comments (1)
I would like to know who decieds that £130. there is enough to live on per week. as a new pensioner i am finding it quite tough.why is nothing been done about it. I am single and own my house . i brought my son up on my own. now i am retired and and will have to sell my much loved home because i cannot aford the insurance, heating, and upkeep. there is no point in increasing the pension as pension credit canceles it. increase the level of the allowance my pension is 127.24. so i get 2.76. pension credit. =£130.try living on that. oh by the way i did get a part time job when i retired last june but had to leave it as i had to have a foot op. I am now waiting on word for the next op on my other foot. later i hope to get work. by then I will be 61. I worked hard all my life for this. I dont know what to do for the best.
Posted by rena hyman | March 26, 2010 2:11 AM
Posted on March 26, 2010 02:11