22 October 2026

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Spending review 2013: Cuts, cuts, and more cuts

Politics.co.uk Staff

Most government departments face further cuts in 2015/16

From winners to losers – and how the government will make up the numbers. The lower down this list you go, the worse it gets.

1) Intelligence services: 3.4% INCREASE (capital spending UP 24.2%)

– Extra cash for cybersecurity
– More funding "to achieve key national security priorities, maintain core counter terrorist capabilities, and protect UK citizens and interests against terrorism threats"

2) International development: 1.1% INCREASE (capital spending UP 25.6%)

– Prioritising fostering economic growth for the world's poorest countries
– Pool of money for climate change increasing to £969 million

3) Health: 0.1% INCREASE (capital spending UP 0.1%)

– Extra £2 billion joining up local health and social care
– Ten per cent real terms cut to administration budgets
– Overhaul of NHS procurement expected to eventually see boost of £1 billion

4) Reserve: 0.0% DEL (n/a)

– The reserve provides a "contingency to meet any unforeseeable costs"

5) Education: 1.0% CUT ( capital spending CUT by 1.7%)

– Schools budget protected in real terms
– Much more funding for lots of free schools

6) Scotland: 1.5% CUT (capital spending UP 2.7%)

– New capital borrowing powers coming from ongoing implementation of the Scotland Act 2012

7) Northern Ireland: 1.5% CUT (capital spending UP 1.5%)

– £31 million extra funding for Police Service of Northern Ireland's counter-terrorism capabilities

8) Wales: 1.8% CUT (capital spending CUT by 0.3%)

– Work still underway to figure out how to pursue fiscal devolution

9) Defence: 1.9% CUT (capital spending CUT by 2.3%)

– Levels of armed services personnel maintained
– Equipment funding to grow in real terms by one per cent
– Around £750 million of savings from contract renegotiations

10) Small and Independent Bodies: 2.0% CUT (capital spending UP by 5.7% capital DEL

11) HM Revenue and Customs: 5.0% CUT (capital spending CUT by 1.9%)

– HMRC's targets for tackling tax avoidance and evasion up to £24.5 billion
– Over £130 million of internal efficiency savings required

12) Law Officers’ Departments: -5.0% DEL (1.7% capital DEL)

– Crown Prosecution Service to continue prosecuting nearly one million cases a year despite budget cuts

13) Business, Innovation and Skills: 5.9% CUT (capital spending UP by 15.3%)

– Major boost for science investment
– Technology and innovation funding reinforces drive
– Student maintenance grants maintained in cash terms for 2015/16 year

14) Home Office: 6.1% CUT (capital spending CUT by 17.6%)

– Counter-terrorism policing budget protected
– Question-marks over whether police numbers will fall as a result of broader cuts
– Administration budgets slashed to 50% of 2010/11 levels

15) Foreign and Commonwealth Office: 6.3% CUT (capital spending CUT by 1.8%)

– Diplomatic network cut heavily, but existing network will be maintained
– Funding consolidated in conflict, stability and security fund totalling £1 billion

16) Culture, Media and Sport: 7.0% CUT (capital spending CUT by 57.6%)

– Arts budget protected with cuts of five per cent
– New operational freedoms for national museums to make up for more big cuts

17) Energy and Climate Change: 8.0% CUT (capital spending UP by 3.1%)

– Funding for low-carbon energy projects continues despite cuts
– £83 million of resource savings at Decc

18) Transport: 9.3% CUT (capital spending UP by 5.5%)

– Huge beneficiary of capital spending surge
– Rail and roads investment to soar

19) Work and Pensions: 9.5% CUT (capital spending CUT by 22.5%)

– New welfare cap will limit 'annually unmanaged expenditure'
– Clampdown will see poorest 40% suffer heavily

20) Environment, Food and Rural Affairs: 9.6% CUT ( capital spending CUT by 7.7%)

– Flood defences ringfenced

21) DCLG Communities: 10% CUT (capital spending CUT by 35.6%)

– Greater collaboration between emergency services encouraged

22) DCLG Local Government: 10% CUT

– Councils face further austerity handed down from central government
– Pooled funding between NHS and local authorities to improve care

23) Justice: -10% CUT (capital spending UP by 14.2%)

– Courts bill being cut by £200 million a year
– Legal aid cuts to contribute extra £220 million a year

24) HM Treasury: 10.0% CUT (capital spending CUT by 26.3%)

– Unusually scant detail from the department behind it all
– "Flexible use of resources will ensure the Department continues to fulfil its role as an efficient and effective economic and finance ministry, focused on its core functions."

25) Cabinet Office: 10.1% CUT ( capital spending CUT by 31.7%)

– Paperclips cutting continues in earnest
– National Citizen Service will grow from 90,000 to 120,000 places

26) Special Reserve: 44.1% CUT

– "There is also a Special Reserve allocation for military operations which takes account of the UK’s military commitments. This is not a fixed budget, and the Treasury remains committed to funding all the net additional costs of military operations in Afghanistan."

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