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* The Guardian | Wednesday 20 October 2010 The Guardian | Wednesday 20 October 2010 * 21

Everything you need to know about today’s cuts



Get the facts
Download the key CSR datasets
guardian.co.uk/datablog

Today is the big day: George Osborne’s comprehensive spending review. This is your pull-out guide to what to look out for, the key numbers and how it will affect you
How has public
spending
changed?
To find out how
big a priority
something is for In 1953-54 total spending was
government
spending, you
have to look at it as
38.8%
of GDP
a percentage of GDP. By 2009-10 it was
When Osborne cuts today,
he could be radically
reshaping today’s
47.8% NHS 1953-54
spending as 2.8%
NHS
2009-10 8.6%
Defence 1953-54
spending as 9%
Defence
2009-10 2.7%
Education 1953-54
spending as 2.7%
Education
2009-10 6.3%
Social security
1953-54 spending as 5.5%
Social security
2009-10 13.4%
of GDP
spending priorities % of GDP % of GDP % of GDP % of GDP

What is the deficit? Just £1bn would buy


You could pay
If you stacked the deficit
in tightly packed new £50
If you laid those £50 notes
out next to each other,
If you paid it back at £1 per
second, it would take
If you paid it back at
£1 per minute, it would
Three months … or the notes, it would stretch they would cover take more than

£1,000,
the annual salaries bill for the food

145 3,950 3,382 200,000


The deficit is the difference between what the nation has of British
coming in and what it has going out. Tax receipts have operations in of 27,482 teachers shopping of
Afghanistan on the top scale of everyone in Britain

000,
gone down with the recession and public spending has
gone up – which is why government has had to borrow pay in London for four days miles into the sky – 20 Wembley sized football years – or back to the years – or back to the time
more money and needs to get the deficit down You could times the height of the pitches beginning of the Bronze when we all lived in caves
You could average transatlantic Age

000
pay off almost all
pay the bill for flight
of the £1.1bn debt
the alcohol Britain
owed by the owners
buys at the shops
of Manchester

£106,369,000,000
The UK’s deficit for 2009-10 was every 24 days

*
United

* excluding financial interventions (e.g. bank bailouts)

How much is being cut by 2014-15? How big is Britain’s public sector? How big is Britain’s total debt? How do the UK’s deficit and debt compare? RESEARCH AND TEXT:
SIMON ROGERS, AMI SEDGHI,

In his emergency budget, Osborne laid out ‘consolidation plans’ up to 2014-15. So we know that the government The cuts will affect Britain’s public sector workforce like no one else. How If the deficit is our overdraft, the national debt is the country’s mortgage Although our deficit is high, our national debt is comparatively low ADITYA CHAKRABORTTY,
RANDEEP RAMESH, PATRICK
BUTLER.
wants to cut spending by £83bn in 2014-15 alone, and to raise taxes by £29bn a year. The point of the spending many people does the state employ – and where are they?
2010 deficit as % of GDP National debt, % GDP SOURCES:
ONS, HM TREASURY, OECD,
review is to spell out where that £83bn will come from. But, according to the Institute of Fiscal Studies, it’s National debt as % of GDP In cash For every man, woman and child in the IFS
Public sector workers Public sector workers as % of workforce
actually a bit less. UK, that works out at

£13,187.79
Photographs:
PA; Christopher Furlong/

£49bn
Getty Images; Evening

£83bn £10bn £6bn


Standard/Hulton archive;
Glasgow 31%
Glasgow 31% 30%
EdinburghEdinburgh 30% Glasgow 31% Edinburgh 30%Images;
Popperfoto/Getty
popperfoto; Adrian
dennis/AFP/GETTY IMAGES;
OMAR Sobhani/REUTERS;
science photo library
Total cuts announced Savings on Cuts announced
Manchester 29%
Manchester 29% Leeds 25%Leeds 25% But in 2009-10 alone, the British government Manchester 29% Leeds 25%
in June budget government debt in May US Japan Germany France Italy UK Canada
Amount left to cut in today’s money Liverpool 39%
Liverpool 39% Sheffield 33%
Sheffield 33% spent £669.26bn – or 1975, Q2 1992 Q1 2010, Q2
Liverpool 39%
1992 Year
payments, thanks to 52% 27% 56.2% Sheffield 33%
23.1 % of workforce

£11bn £54bn £10,830


1975, Q21975, Q2
1992 Q1 1992 Q1
2010,
low Q22010,
interest Q2
rates US US Japan Japan
Germany
Germany
France France
Italy Italy UK UKCanada Canada 1992 1992Year 2010 2010
Year Birmingham 32%
Birmingham 32% 1975, Q2 1992 Q1 2010, Q2 US Japan Germany France Italy UK Canada 1992
-5.3 Year 2010 -5.4 -5.2
£52.1bn £165.8bn £814.9bn -8.2 -8.6 Birmingham 32% 5.9m People
52% 52% 27% 27% 56.2% 56.2% 23.1 %23.1
of workforce 20.8
% of workforce 20.8 52% 27% 56.2% -10.7 23.1
54.7 % of workforce 20.8100.8 -13.3 32.6
-5.4 -5.4 -5.2 -5.2 104.6 60.7
-8.2 -5.3 -5.3 -5.2
Westminster 17%
Westminster 17% -5.3 -5.4 65.2
£52.1bn £52.1bn
£165.8bn £165.8bn
£814.9bn £814.9bn
-10.7 -10.7-8.2 -8.6 -8.6100.8 5.9m 5.9m
People People6m 6m London London

£52.1bn £165.8bn £814.9bn -8.2 -8.6 5.9m People 6m 56.2 Westminster 17%
-13.3 32.6 32.6 -10.7 SOURCE: ONS FIGURES, £S NOT ADJUSTED FOR INFLATION SOURCE: OECD
London

54.7 54.7 100.8-13.3 54.7 100.8 -13.3 32.6


Welfare cuts announced 65.2 Left
65.2to cut at104.6
104.6 60.7 60.7
56.2 56.2 65.2 104.6 60.7
56.2
SOURCE: ONS SOURCE:
in June budget FIGURES,ONS
£S NOT
FIGURES,
ADJUSTED
£S NOT
FORADJUSTED
INFLATION
FOR INFLATION
2014-15 prices SOURCE: OECDSOURCE: OECD SOURCE: ONS SOURCE: ONS SOURCE: ONS SOURCE: ONS SOURCE: ONS FIGURES, £S NOT ADJUSTED FOR INFLATION on each of us SOURCE: OECD SOURCE: ONS SOURCE: ONS

Five things Osborne might say The chancellor’s The big Follow the speech guardian.co.uk/
… and what he really means deficit bingo questions politics/spending-review
Play along with Master Osborne by marking off those key
“As Labour’s chief secretary big public sector), and it is extremely funds must be concentrated phrases – shout ‘cut!’ if you get them all Why is the government attempting documents from the prying lenses of will go as a direct result of the public After prime minister’s questions at noon, the chancellor, George Osborne, will make his statement
eloquently put it: ‘There is no dubious amid a slump in which few to bring down public spending so the Westminster paparazzi, we know spending cuts. on the comprehensive spending review at 12.30pm. He is expected to speak for up to an hour. Alan
where they are most needed.”
firms wish to hire. drastically? 490,000 public sector jobs are expected Johnson, the new shadow chancellor, will then reply. After this, many MPs and officials will leave the
money left.’” Such rhetoric both distinguishes the The coalition argues that unless the to go by 2014. Why doesn’t the government raise Commons chamber to begin briefing, spinning and reacting.
Expect Liam Byrne’s gift to the coalition coalition from the Conservatives’ budget deficit is brought down soon more tax to bring down the deficit?
to be wheeled out – that “no money “We want to tear down Labour’s Thatcherite past, and justifies the We’re all Soaring costs and sharply, investors will stop lending But the NHS is protected, right? Partly because it doesn’t believe in
left” jokey note which he taped to his top-down targets and spending extension of means-testing – as
in this Responsibility of welfare to the UK. This has happened before, The NHS will get a small real-terms putting up taxes. But also because, the Online On television
Treasury desk. Far more than anything ringfences so councillors can embodied, for example, in the plan to with the gilt-buyers’ strike of 1976. increase – which means cash will grow government argues, tax rises cannot ≥ Andrew Sparrow’s unrivalled live blog BBC2 11.30am The Spending Review
ministers can say themselves, to have withdraw child benefit from higher-rate together It also believes that the key lessons faster than the inflation rate. The signs be counted on like spending cuts can. will dissect the chancellor’s speech as he Andrew Neil presents full coverage.
a Labour frontbencher describe the
concentrate their resources on taxpayers. Watch out for means-testing learned by other countries who have are the government will use a GDP A banker can scheme his way around makes it.
public finances in such terms makes the those things that matter most to of disability benefits, and expect much tackled huge benefit deficits is to make deflator as the baseline and then add a bonus levy, after all. George Osborne ITV1 12.15pm Spending Review Live
case Osborne is desperate to get across. local people.” play to be made of claims that such deep and early cuts. a small fraction of a per cent to the also believes that cutting government ≥ Instant reaction on Twitter from our Alastair Stewart anchors.
Namely, that cutting is the only way.
The coalition may be slightly more moves are technically “progressive”
Crisis in the Tough NHS. However, a small increase will borrowing may bring down the interest team of specialist reporters.
Sky News 11am Hard Times:
when considered in isolation. How will the comprehensive spending not be enough to meet rising demand rates demanded by investors.
inclined to devolve than Labour, but
Enterprise Eurozone but fair review (CSR) affect public services? at the same time as one of the biggest
≥ In-depth comment and analysis on The Spending Review
“The country has not been it also wants to ensure that the most Comment is Free. Full coverage through the day.
The CSR outlines the spending for reorganisations in NHS history looms. So, after Osborne makes his speech,
undertaxed, it has overspent – explosive decisions are detonated at a “I want to support the person who ≥ At a glance guide to the cuts,
departments and the most widely what’s next? On radio
safe distance from Whitehall. If the big quoted figure is 25% cuts, in real terms, Will it affect me if I don’t work in public Funding will be cascaded down to the department by department, plus
with public spending eating up departments all seem to be getting away leaves their house at 7am for a
for non-ringfenced areas of spending. services? devolved administrations and local winners and losers. Radio 4 12 noon
half the whole economy, crowding with less than the much-hyped 25% low-paid job, and resents seeing Protection With health and international Undoubtedly. The private sector needs authorities. Councils, which have been The Spending Review
out private effort.” the blinds pulled down across the ≥ Patrick Butler’s new cuts blog will
reductions, it may well be that the sums
Waste for the development expected to be protected, to have confidence that the economy modelling potential cuts scenarios in
chart the impact of cuts at both local
presented by Martha Kearney and
Economic necessity is being used to
are relying upon even deeper cuts to
grants made to town halls. By abolishing
street, where a family is living on Bloated front line education will “only” suffer cuts of up will rebound. Some companies have the runup to CSR 2010, will finalise their
and national level.
Winifred Robinson.
justify the political choice to slash the state.” to 10%. Politically impossible are deep already had public sector contracts plans after the local government finance Radio 5 Live 11.30am
national targets, ministers condemn cuts in the Northern Ireland budget, cut so they are cutting back on settlement in late November or early ≥ Tell us your stories about cuts in
services instead of raising taxes. Spending Review
local authorities to be free – free to The pretext for making the poorest where unionists and nationalists investment and recruitment in turn. December. Details of what services are Leeds as we try to build a unique picture
“Crowding out” is the missing link in 2010 Victoria
impose the cuts the centre would rather poorer is being fair to the nearly poor – have both made the case that the six Surveys show consumer confidence to go or be reduced will emerge after through the voices of local people.
the logic. The doctrine claims that the Derbyshire and
overmighty state has drained the pool not announce. people who have jobs, but poorly paid A more counties are different. reaching its lowest level in more than that, and many public servants will
≥ You make the cuts: our interactive Gabby Logan
of workers and capital to the point ones. The budget imposed one steady
prosperous Unaffordable a year. The enveloping gloom will not discover whether they are to lose their
game lets you conduct your own present full
where firms cannot grow. The theory “Those with the broadest
squeeze on workless families and, in the Freedom How many public services workers will make it easy for businesses to gear job. In April 2011, the first effects of
spending review. coverage.
may be useful to the government, but name of rewarding struggling grafters, future lose their jobs? up for expansion. A recent report by those cuts – which may in some cases
it is questionable at the best of times shoulders should bear their fair the spending review is likely to tighten Thanks to Danny Alexander’s inability PricewaterhouseCoopers estimates unfold over four years – will start to be
(Scandinavia has long thrived with a share of the burden. Scarce public the vice on benefits. Tom Clark to shield key passages in Treasury that nearly 500,000 private sector jobs felt.

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