Chancellor George Osborne Accepts Recommendations By Lord Heseltine To Boost Regional Growth

The Chancellor George Osborne outlined his spending review for 2015/16 and these were the key points:


  •  Winter fuel allowance for British citizens living abroad to be linked to a ‘temperature test’ from Autumn 2015 to ensure pensioners in hot countries do not get it.
  • Non-English speaking unemployed must learn the language or risk cuts to payments.
  • A ‘welfare cap’ set in Budget statement annually from April 2015 for four years. This excludes state pensions.
  • New work search system will require those who claim benefits to provide a CV, register for online job search and start looking for work.
  •  Single parents of three and four-year-olds required to attend job centres regularly and prepare for work.


  • £50bn of capital investment in 2015/16, amounting to more than £300bn for infrastructure including broadband, science and schools by 2020.
  • Promises to begin the largest programme of investment in roads for 50 years and in railways since the Victorian age.


  • Education budget increased to £53bn for spend on schools only.
  • Pupil Premium extended to more children
  • 180 more Free Schools funded.


  •  HMRC resource budget cut by 5%.



  • Ending automatic progression pay in public sector – though Armed Forces excluded.
  • Pay rises limited to average of up to 1%.
  • Public sector workers to fall by extra 144,000 by 2015/16.


  •  Provide the Mayor of London with almost £9bn of capital spending and additional financing power by 2020.
  •  Transport to make 9% savings in day-to-day spending but receive largest boost of any department to its capital budget, which rises to £9.5bn – to be repeated every year to 2020.


  • NHS budget to rise to £110bn for 2015/16.
  •  £4.7bn capital spending in NHS.


  •  Defence resource budget maintained at £24bn.
  •  Equipment budget will be £14bn and will grow by 1% in real terms in following years.
  •  No reduction in numbers of soldiers, sailors or airmen, but cuts in civilian
  • workforce.


  •  Increase of 3.4% in intelligence services budget.
  •  Savings of 10% in justice department.


 A further £5bn of efficiency savings found in the latest spending round.

  Total Government spending for 2015/16 will be £745bn.
BY: Shehab Khan