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Cut, cut and cut again, well not quite.

BBC NEWS | Business | The return of the Iron Chancellor

The chancellor looks like bridging the black hole in the public finances by spending cuts rather than tax rises.

Ah the BBC is starting to notice the Black Hole, and the Chancellor is going to "cut". This morning children your task is to see if you can spot any BBC bias in the article.

think-tank the Institute of Fiscal Studies, Gordon Brown has pencilled in 8bn in spending cuts as well as 3bn in tax rises.

The new strategy, if confirmed in the spending review covering the three years to 2011, would mean real pain.

And it signals the end of the era of rapid expansion of public spending on essential services funded by tax rises.

The cuts are necessary to move the budget back into surplus and meet his fiscal rules in the future.

According to the IFS, many public spending departments could face little real growth at all in the future if other key commitments are to kept.

In particular, if spending on the National Health Service keeps rising (even by a reduced 4% a year, as suggested by the Wanless report) and the government also honours its commitment to raise aid to poor countries to 0.7% of GDP, then other departments will have to grow by less than 1% in the next spending round.

This could make it difficult for the government to meet its future aim of reducing child and pensioner poverty, the IFS said.

The tight spending round...

So all these horrible cuts actual mean is that some departments, not the NHS, will not grow quite as fast....

Comments

Hey, but at least we'll still be able to send more money to Africa so they can buy some more guns.

Hey, but at least we'll still be able to send more money to Africa so they can buy some more guns.

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