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Back-office spending to be reduced by £6bn

Chancellor George Osborne has pledged to cut £6bn from Government back-office spending as part of the spending review, double the original savings pledge of £3bn.

Last week, Osborne told the House of Commons that the Government will deliver a £6bn reduction in costs over the four-year period to 2014/15.

He confirmed that 490,000 public sector jobs will be cut over the next four years.

The dramatic scaling back of the public sector was leaked the day before the CSR when Treasury chief secretary Danny Alexander was photographed with a copy of the review open on his lap, revealing the job los-ses to come.

Total public spending is to increase from £702bn in 2012 to £713bn in 2013. It will rise to £724bn in 2014 and reach £740bn in 2015.

Capital spending will fall from £50bn in 2012 to £48bn in 2013, £45bn in 2014 and £46bn in 2015.

Osborne said: “We are going to bring the years of ever rising borrowing to an end. Tackling the budget deficit is unavoidable, the decisions about how we do it are not. To back down and abandon our plans would be the road to economic ruin.”

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