LONDON Britain’s government is asking some departments to prepare to cut day-to-day spending by as much as 40 percent by the 2019/20 tax year, in a major spending review launched by Conservative finance minister George Osborne on Tuesday.
The finance ministry also set out changes to the Bank of England, adding an external member to its regulatory Financial Policy Committee and following a recommendation to cut the number of interest rate setting meetings to eight a year.
“The (government) will ask departments to model two scenarios of 25 percent and 40 percent of savings within their resource budgets by 2019-20 in real terms. These are the same reductions requested ahead of the Spending Review of 2010,” the finance ministry said in a statement.
(Reporting by David Milliken and William James)
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