The coalition government has set the cutting of the UKs defecit at the heart of the political agenda.
Today Chancellor George Osborne will be setting out which government departments will be asked to cut their spending, and by how much. Some departments are expected to receive budget cuts between 25% and 40%.
We’ll have the latest on cuts spending announcements and what they mean for Wales as they happen.
Log on to ITV.com/Wales and follow us on Twitter @ITVWales for the latest – tune into Wales tonight, ITV 1 Wales for a round up of the day and further analysis of what the spending review will mean for you at 18:00 this evening.
You can also get involved in the conversation by sending us your views on our blog, facebook page or by adding #ITVspendreview to your tweets. You can also email us email@example.com.
13.55: Wales’ budget in real terms is cut by 7% because the Chancellor’s increase in funding for the Assembly is below inflation.
13:51: Johnson: I do not think the Chancellor understands the worries of families working up and down the country which will now have increased rather than decreased.
13:50: Johnson: The Chancellor says the cuts made now are less than those Labour would have made – he also says Labour wouldn’t have done anythign to reduce the deficit – he cannot have it both ways – he cannot be right on both and infact he is wrong on both.
13:47: Johnson: A rising dole queue means a bigger welfare bill. To reduce the deficit the starting point must be jobs, jobs and jobs
13:41: Shadow Chancellor attacks Deputy PM and Liberal Democrats from backing down on election promises.
13:40: Alan Johnson: The ridiculous analogy to credit card debts insults the intelligence of the people of the UK
13:39: Alan Johnson: Emergency budget was unfair and avoidable “The deficit has to be paid down Mr. Speaker” Getting quite rowdy in the house.
13:35: Alan Johnson: Many cuts are idealogical not economic. “People opposite are deficit deceivers”.
13:34: Shadow Chancellor Alan Johnson now speaks
13:32: Cheers and jeers from both sides of the house as George Osborne finishes his speech. George Osborne: Today’s decisions “bring sanity to our public finances”
13:27: Government to spend £30bn on improved transport links. Transport is a devolved issue in Wales and Scotland but the Chancellor says major road and rail upgrades will go ahead around Cardiff Newport and Barry
13:24: BBC will take over responsibility for the World Service and part fund S4C. BBC to cut online spending. Department of Culture, Media and Sport budget will come down to £1.1 billion by 2014/15
13:20: Science budget to be protected – savings to be made through increased efficiency
13:18 @KeirSimmonsITV Home Office source says police funding will take account of local council precept – so projected 14% cut includes the local council money.
13:15: £13.5bn rise for Wales according to Chancellor. Review of Barnett formula will take place with the Senedd
13:14: A new cancer drug fund will be created and health research spending will be protected
13:12: @OGarethHughes Child benefit announcement from conference confirmed, but no other changes.
13:11: Free bus passes, winter fuel allowances and free eye tests and prescriptions for the elderly remain
13:09: Osborne: Increase housing benefit shared room rate from 25 to 35.
[ Shared room rate is a lower (capped) rate of housing benefit payable currently to under 25s claiming benefits who are not diabled and do nto ahve children. It is based on the assumption that those in that age group are more likely to house share a property when renting than those above that age. The Chancellor says he has increased this to 35 to reflect the current living arrangements of many young people.]
13:07: Osborne: All work age benefits and credits will be replaced by a single benefit.
13:03: Osborne: We want public service pensions to be a gold standard but they need to be fundable – there has to be an increase in employee contributions as outlined in Hutton report.
13:00: Osborne: Increased state pension must be funded by an increase in the basic pension age. By 2020 the pensionable age for both men and women will be 66.
12:59: Osborne: No more fraud through tax evasion and benefit fraud. The Chancellor says that the government plans on cracking down on both tax evaders and fraudulent benefit claims.
12:58: #ITVspendreview Osborne: We do not want to let banks off making their contribution – nor do we want to drive them abroad. Levy to be imposed on each bank every year. Only four out of 15 main UK banks have signed up voluntarily to the code of practice suggested by previous government.
12:55: Chancellor: “Review about fairness” – receives massive jeer from backbench MPs.
12:49: Limits to Fire Service budgets in exchange for operation reform – while major reviews planned for social housing.
12:45: Secretary of State for Wales Cheryl Gillan will be on Wales Tonight at 18:00 to explain what the spending review means for Wales.
12:42: Every main government department will be cut by a third says the Chancellor.
12:41: George Osborne ”I believe the public sector needs to reform to meet the spending and aspiration needs of today’s public not that of the 1950s.”
12:37: The UK is paying £43bn a year in debt interest, says Mr Osborne
12:36: George Osborne ”I made it clear that spending reductions rather than tax increases were what was needed for the reduction of our deficit”
12:31: George Osborne has started his speech: watch it as it happens online here – ITV.com/news/Live
12:20: From @ITV_news In a few minutes George Osborne will reveal his spending review, we’d like you to have your say on the cuts and how you think they will affect you.
Joining us today for a live web chat during The Chancellor’s speech are Clare Francis Editor Moneysupermarket.com, economist and public finance expert Prof Steve Schifferes and local government expert Tony Travers. They’re ready to answer your questions as well as offer their expert analysis.
For Live Network coverage of the spending review got toITV.com/news/Live
1213: Labour leader Ed Miliband asks Mr Cameron if, as is forecast, half a million jobs are lost and unemployment continues to rise next year – will this be a failure for the government’s Spending Review? Mr Cameron replies that the “whole point” of the government’s approach is to take UK out of the danger zone. “We had a choice when we were elected: should be keep what we had been left or should we take Britain out of danger zone?”
12:02: Prime Minister’s Question Time begins. You can watch the review live and join the debate with ITV News
11:47: Ieuan Wyn Jones believes today will see “The deepest and most sustained cuts to public services since the end of the Second World War.” announced.