Cuts to police and tax credits scrapped in Chancellor’s Spending Review

Chancellor George Osborne outlined the government's spending plans in his Autumn Statement and Spend

Chancellor George Osborne outlined the government's spending plans in his Autumn Statement and Spending Review (Pic: PA/Yui Mok) - Credit: PA Wire/Press Association Images

George Osborne vowed to “put security first” as he outlined the government’s economic plans for the next five years in his Autumn Statement and Spending Review.

The Chancellor scrapped proposed cuts to poilcing while announcing the counter-terrorism budget will increase by 30 per cent.

“Now is not the time for further police cuts,” he told MPs. “This is the time to back our police and give them the tools to do their job.

“Our police protect us and we are going to protect the police.”

The Chancellor also U-turned on proposed £4.4bn cuts to tax credits, a month after the government was defeated in the House of Lords, pointing out they will be phased out when universal credits are introduced.


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“The simplest thing to do is not to phase these changes in, but to avoid them altogether,” he added.

Mr Osborne claimed local councils are sitting on property worth £250bn, and local authorities will now be able to keep 100pc of receipts from the sale of any assets.

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Councils will also will be able to add a 2pc levy of council tax precept exclusively for social care.

The Department for Transport’s budget will fall by 37pc but its capital spending will increase by a half to £61bn, including a £11bn investment on London-wide infrastructure and the creation of a permanent pothole fund.

Meanwhile NHS spending in England will rise from £101bn to £120bn by 2021, although £22bn of efficiency savings were announced, with the Department of Health’s budget cut by a quarter.

The £15million raised from the so-called “Tampon Tax” will go to women’s charities.

Although the basic state pension will rise by £3.35 to £119.30 from next year, the Treasury boss also confirmed £12bn of welfare spending will be made.

The Department for Business, Innovation and Skills’ budget is being cut by 17pc, although the small business rate relief scheme has been extended for another year .

The Chancellor also announced free 30 hours of weekly childcare for three and four-year-olds from 2017 for parents working more than 16 hours a week and earning less than £100,000.

Up to 500 new free schools and university technology colleges are set to be constructed while sixth-form colleges will be allowed to become academies.

How will you be affected? Email mark.shales@archant.co.uk or call 020 8477 3824.

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