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View Full Version : Osborne warns of more benefits cuts



John
06-23-2010, 08:04 PM
The Chancellor said that if further savings could be found from the welfare budget, other public services could be spared even more savage cuts in the autumn spending review.

Another £13 billion in benefit cuts could mean Whitehall departments would be facing budget reductions averaging 20 per cent over the next four years rather than the 25 per cent Mr Osborne predicted in his Commons statement.

He said: "If over the coming couple of months we can find further savings in the welfare budget, then we can bring that 25 per cent number down.

"In the end, that is the trade-off not just between departments but also between the very large welfare bill and the departmental expenditure bill. That's why we are having this big public engagement through the spending review process so that as a country we can come to that decision collectively."

Mr Cameron, appearing with Deputy Prime Minister Nick Clegg in a televised question-and-answer session, warned that public sector workers also face changes to their pensions on top of the two-year pay freeze announced in the Budget.