Highlights - Britain takes knife to 2015 public spending

LONDON (Reuters) - Following are highlights of the British government's review of spending priorities for the 2015/16 fiscal year.

ON DEFENCE BUDGET

"The defence resource budget will be maintained in cash terms at 24 billion pounds. The equipment budget will be 14 billion pounds and will grow by one per cent in real terms thereafter."

ON FUNDS FOR LOCAL ENTERPRISE

"We're also embarking on major reforms to the way we spend money locally through the creation of the Single Local Growth Fund that Lord Heseltine proposed.

"This will be 2 billion pounds a year - that's at least 10 billion over the next Parliament - that Local Enterprise Partnerships can bid for and the details will be set out tomorrow."

ON AFFORDABLE HOUSING

"We're committing over ?3 billion capital investment in affordable housing and we will extend the Troubled Families Programme to reach 400,000 more vulnerable families who need extra support."

ON FREEZING COUNCIL TAX

"We will fund councils to freeze council tax for the next two years. That's nearly 100 pounds off the average council tax bill for families. This bring savings for families to 600 pounds over this Parliament."

ON PUBLIC SECTOR PAY

"We're reforming pay in the public sector. We are holding down pay awards. And public sector pay rises will be limited to an average of up to one per cent for 2015-16.

ON ENDING PROGRESSION PAY

"The biggest reform we make on pay is to automatic progression pay. This is the practice whereby many employees not only get a pay rise every year, but also automatically move up a pay grade every single year - regardless of performance.

"Progression pay can at best be described as antiquated; at worst, it's deeply unfair to other parts of the public sector who don't get it and to the private sector who have to pay for it. So we will end automatic progression pay in the Civil Service by 2015-16.

"And we are working to remove automatic pay rises simply for time served in our schools, NHS, prisons and police. The armed forces will be excluded from these reforms."

ON NEED FOR DEFICIT REDUCTION

"We know from the global turbulence of the last few years that the economic risks are real. That the recovery has to be sustained. And if we abandon our deficit plan, Britain would be back in intensive care."

ON ECONOMIC OUTLOOK

"While recovery from such a deep recession can never be straightforward, Britain is moving out of intensive care - and from rescue to recovery."

(Reporting by Christina Fincher)

Source: http://news.yahoo.com/highlights-britain-takes-knife-2015-public-spending-122239897.html

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