Chancellor George Osborne has unveiled the much anticipated spending review, which outlines a series of cuts designed to 'bring sanity to public finances.'
In a bid to cut the country's deficit, the review, which Osborne has promised will bring stability to the economy, includes slashing £7 billion from the welfare budget.
Osborne said, “We have chosen to spend on the country’s most important priorities – the health care of our people, the education of our young, our nation’s security and the infrastructure that supports our economic growth,” he said.
“We have chosen to cut the waste and reform the welfare system that our country can no longer afford,” he added.
The NHS has been protected with total health spending rising each year. Osborne also confirmed the controversial rumours that he would be axing child benefit for higher earners. “I wish it were otherwise – but I simply cannot ask those watching this earning just £15,000 or £30,000 to go on paying the child benefit of those earning £50,000 or £100,000.”
He also confirmed that there will be a new cap on the total amount of benefits a family can receive. ”No family that doesn't work will receive more in benefits than the average family that does go out to work,” he said.
The government also hopes to save £5 billion a year by raising the retirement age for men and women to 66 by 2020.
