The new Conservative-Liberal Democrats coalition government is all set to reveal today how it will narrow soaring budget deficit by imposing spending cuts.
Chancellor George Osborne is expected to announce £6 billion in spending cuts. Public sectors could be asked to make no new recruitments this year, which could save as much as £163 million.
A cull of non-departmental executive agencies is expected to save more than £500 million. Cuts in discretionary spending, which include traveling expenses and consultancy fees, could save the government around £1 billion. Property, IT, recruitment and advertising are also expected to face heavy spending cuts.
About spending cuts, Deputy PM Nick Clegg said, “There are going to be difficult decisions, they are going to be unpopular decisions, they are going to be controversial, we are going to have to hold our nerve."
Nick Clegg added that the former Labour Government was throwing money as if there was no tomorrow.
However, a number of experts have already warned that front-line services could be hit and economy could slip back into recession if spending cuts are not made carefully.