Spending Review details outlined by government

Date: 9th June 2010

The new coalition government has detailed how the forthcoming Spending Review (SR) is to be conducted.

A number of changes mean that government departments will have their spending plans checked against "tough criteria" in order for funding to be approved.

Under the terms of the SR, all government departments will be required to outline their spending plans before the summer recess.

Plans will also have to meet the new criteria of demonstrating that projects being funded are "essential to the government's priorities".

Departments will also have to answer whether or not the activity can be funded elsewhere or provided more efficiently.

This could be good news for a number of small firms as outsourcing work could be seen to be a more efficient way of completing projects.

Chancellor of the exchequer George Osborne said: "This is the great national challenge of our generation: after years of waste, debt and irresponsibility, to get Britain to live within its means. It is a time to rethink how government spends our money.

"We didn't choose the terrible economic situation we inherited. But we can work to put it right, to deal with our debts, to set our country on a brighter economic course, and show that we are all in this together."

Posted by Thomas Fletcher