New Chancellor George Osborne has revealed an immediate £6.25bn cut in "wasteful" public spending including £1bn cut in "discretionary" spending.
Osborne, standing alongside his Lib Dem deputy at the Treasury, David Laws, said the reductions would be made while maintaining “frontline” services in key areas such as the NHS. He also announced that schools spending would be protected.
Some £500 million will be “recycled” to boost employment and skills, and the rest will be used to cut the Government’s debt.
“In the space of just one week we have found and agreed to cut £6.25 billion of wasteful spending across the public sector,” Mr Osborne said.
Previously only health, defence and international development budgets had been promised protection from in-year cuts. But Mr Osborne said: “Because we have found these savings, I am able to make a new commitment which we didn’t think possible before. I have already agreed that savings for health, defence and international development will be reinvested in their front lines.”