The 2010 Comprehensive Spending Review

In recent years, Government spending has consistently exceeded Government receipts, resulting in an annual deficit and a spiralling national debt. Tackling this deficit has become the Coalition's top priority, prompting the Government to conduct a detailed review of public spending.

Chancellor George Osborne presented the Comprehensive Spending Review to the House of Commons on 20 October 2010. He unveiled over £80 billion in public sector spending cuts, including £7 billion in welfare savings, as part of the Government's commitment to eliminate the deficit by 2015. With Government departmental budget cuts averaging 19% over four years, the Chancellor estimated that around 490,000 public sector jobs may be lost, now predicted at £330,000.

Some of the key points from the Spending Review are outlined below:

• The state retirement age for men and women is to be equalised at 65 by November 2018. It will rise to 66 for men and women by 2020 - four years ahead of the previous plan
• Proposals will be set out to replace all working-age benefits and tax credits with a single, simple Universal Credit over the course of the next two Parliaments
• The educational maintenance allowance for 16-19 year olds will be dropped
• The child element of the Child Tax Credit will be increased by £30 in 2011/12 and £50 in 2012/13 above indexation, meaning annual increases of £180 and then £110 above the level promised by the Labour Government
• The Chancellor confirmed that Child Benefit will be removed from families with a higher-rate taxpayer. Child Benefit will now continue to be paid until a child leaves full-time education at the age of 18 or even 19
• Universal benefits for pensioners will be retained exactly as budgeted for by the previous Government and the temporary increase in the Cold Weather Payment will be made permanent
• Apprenticeship funding will be increased by 50% over the next four years, covering 75,000 extra places
• The Train to Gain programme will be dropped and replaced with an SME-focused training scheme
• A permanent tax levy on banks is being introduced.