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Some government departments have been asked to make savings which would amount to a 11% cut in spending – as the prime minister faces calls to raise defence spending.
Sky News has been told that departments which do not have their spending protected have been asked to model two options – “flat” spending, which, adjusted for inflation, amounts to a cut; and a deeper reduction amounting to 11% in real terms.
No final decisions on departmental spending will be taken until the Treasury’s spending review, which sets departmental budgets for three years, and will be completed in June. Decisions on possible spending cuts by departments have been described by sources as “incredibly difficult”.
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It comes amid calls to increase defence spending, in the light of the Trump administration’s warning to European nations to shoulder their own security – and send peacekeeping troops to Ukraine.
Sir Keir Starmer has promised to increase defence spending to 2.5% of GDP but has not set out when this will be achieved. Ministers say a defence review to be published this spring will set out a “roadmap” to it.
Those departments with their budgets protected include the NHS, childcare and schools, defence and overseas aid at 0.5%.
What could be hit?
This raises the prospect of more severe cuts for unprotected departments including local government – which is responsible for social care – justice, including courts and prisons; the environment, Home Office and culture.
John Healey the defence secretary, announced a shake-up of defence spending at a speech in Westminster, to focus on “war readiness and deterrence”. He said: “At this time, we must rearm Britain.”
He said: “The decisions that we make right now over the coming weeks will not…
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