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Investment News Spending Review Live Commentary 18471394

Spending review: live commentary

Spending review: live commentary

20 October 2010 / by Paul Dicken

Updates will be posted below as the spending review unfolds in Westminster, as well as reactions.

Ahead of the review announcements from chancellor George Osborne, prime minister David Cameron has been answering questions at Prime Minister Questions.

12:09 Leader of the opposition Ed Miliband and the PM are sparring over whether the economy and employment rates will be able to withstand the cuts. David Cameron says Labour cannot attack a plan without a plan of their own.

12:33 – Osborne says the government will be ‘like every solvent household in the country that what we buy we can afford’. £43bn in debt interest being paid a year he says.

12:35 – Says measures have brought ‘breathing space in the sovereign debt storm’.

12:39 – Says capital spending will be £2bn higher than forecast.

12:40 – Real terms public spending to be at the same level as it was in 2008.

12:43 – ‘There will be some redundancies [in the public sector] … unavoidable when the government has run out of money’, Osborne says.

12:52 – Foreign Office will have budget cut of 24 per cent but UN commitments on aid maintained with 0.7 per cent of national income to go to international aid by 2013.

12:57 – Those on ‘highest income will contribute more towards the entire fiscal consolidation’ Osborne says.

13:00 – £900million more to target tax evasion and fraud aiming to recoup some £7bn – but HMRC will be expected to find 15 per cent ‘resource’ savings.

13:05 – State pension age for men and women to reach 66 by 2020.

13:05 – Osborne puts off increasing pension contributions for public sector workers; final salary scheme for MPs expected to end.

13:10 – No impact on child poverty from cuts, based on ‘model we inherited’, Osborne says.

13:16 – Equitable Life investors that had ‘with profit annuities’ will have ‘total relative loss’ covered by the government.

13:21 – Green Investment Bank will get £1bn from government with hopes to raise much more from the private sector and future government asset sales.

13:24 – TV licence fee freeze confirmed for six years

13:34 – Osborne puts average savings in departmental budgets at 19 per cent over the next four years, rather than 20 per cent planed by previous government, Osborne claims.

13:40  – Alan Johnson, shadow chancellor, rejects attempts to lay all the blame for the deficit at Labour’s door. But says deficit needs to come down. Accuses coalition of ‘reckless gamble’.

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