Public Expenditure

Treasury written question – answered on 14th February 2011.

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Photo of Matthew Hancock Matthew Hancock Conservative, West Suffolk

To ask the Chancellor of the Exchequer if he will place in the Library the figures underlying Chart 1.3 on page 18 of the Spending Review 2010.

Photo of Danny Alexander Danny Alexander The Chief Secretary to the Treasury

The following table presents the figures underlying chart 1.3 on page 18 of 'Spending Review 2010'.

2014-15 Policy inherited by the Government
Total cuts (£ billion) 81 56
2010-11 efficiency savings 7 -
DEL savings in spending review period (excluding the impact of 2010-11 efficiency savings) 46 48
Budget AME savings 11 -
Spending review changes in AME 7 -
Debt interest savings 10 7

Spending reductions are shown against baseline of growing DEL in line with inflation, in line with Table 4.8 in the OBR pre-Budget forecast, and the AME forecast in the Budget.

At the spending review, the Government set an AME margin, which reaches £4 billion by 2014-15. The previous Government always had an AME margin and therefore, to provide a consistent comparison for implied DEL savings, the table .is based on the assumption that the previous Government would also have set an AME margin of £4 billion by 2014-15. The cuts implied in 'policy inherited by the Government' are therefore made up of £52 billion (including £44 billion DEL savings) as set out in table 1.1 of the June Budget, plus £4 billion of further DEL savings that we assumed the previous Government would have made to fund the AME margin. This gives a gross figure for policy inherited by the Government of £56 billion. Total cuts by 2014-15, which include both the previous Government's cuts as well as this Government's cuts, as shown in the table 1.3, are £81 billion, which is net of the AME margin.

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