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Child Trust Funds will be axed by January but funding for schools and Sure Start will be protected, he said.

Shadow Chancellor Alistair Darling said Mr Osborne must \"come clean\" on the details and how many jobs were at risk.

Of the cuts identified, £500m is to be reinvested in further education, apprenticeships and social housing, leaving a net spending cut of £5.7bn - less than 1% of total government spending.

The savings, according to the government, will break down as:

  • £1.15bn in \"discretionary areas\" like consultancy and travel costs, £95m through savings in IT spending, £1.7bn through delaying/stopping contracts and projects and renegotiating with suppliers
  • £170m from reducing property costs, at least £120m from a civil service recruitment freeze and £600m from reducing quango costs and £520m from other \"lower value\" spend
  • The biggest cuts by department are £683m (4.6% of departmental budget) at Transport, £780m (7.2%) at Communities and Local Government, £836m (3.8%) at Business, £670m (1.1%) at Education and £325m (3.2%) Department for Justice
  • The devolved administrations in Scotland, Wales and Northern Ireland would have to save £704m - although they would have the option of deferring savings until the following year
  • And local authorities - which will be expected to save £1.165bn - will be given more \"flexibility\" to find savings as \"ring-fences\" around government grants are being removed.

Most of the money saved this year will be used to reduce the deficit - which was £156bn in 2009/10. Next year the savings will offset the decision not to bring in the full National Insurance rise Labour planned for April 2011.
 

We’re not long back from our micro tour and thought we’d let you know all about it. Liverpool We played at MelloMello at the launch of Look.See.Disco! A good night was had by all and people seemed to be enjoying it; No...

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