The Spending Review has allocated resources across all government departments according to the government’s priorities and has set firm and fixed spending budgets for each department from 2011-12 to 2014-15.
Read more about the Spending Review 2010.
The 3 principles governing the government’s approach are fairness; driving out waste and promoting reform; and prioritising capital spending that supports sustainable economic growth.
The Chancellor told the House of Commons that it was essential to deal with the deficit now to ensure prosperity in the future.
He said:
To back down now and abandon our plans would be the road to economic ruin. We will stick to the course. We will secure our country’s stability. We will not take Britain back to the brink of bankruptcy.
Spending Reviews have been an important part of governmental planning since the late 1990s. Learn more about Spending Reviews.
Today’s announcement follows the publication of the Strategic Defence and Security Review, which set out the government’s priorities for defence and security spending.
Previous story: Strategic Defence and Security Review