Wednesday, May 29, 2013

Philip Hammond fires warning shot at George Osborne over military cuts

The Defence Secretary has signalled he may not be able to make the deep budget cuts required by George Osborne without affecting front-line troops.

Britain's Chancellor of the Exchequer, Osborne speaks with Chief Secretary to the Treasury, Alexander during a tour of a Crossrail construction site in central London
Hard-headed: ministers who cannot cut their budgets will be interrogated by Osborne and Alexander (pictured here on a visit to Crossrail, central London.) Photo: REUTERS
In a warning to the Chancellor, Mr Hammond said he would not make "output cuts" that have an impact on the UK's ability to defend itself without forcing Mr Osborne to reconsider savings "across Government"
Mr Osborne yesterday said he was "pretty confident" of getting £11.5 billion of extra public spending cuts from Whitehall, after he got seven departments to sign up to cuts of around 10 per cent.
However, speaking on BBC Radio Four's Today programme, the Defence Secretary sounded sceptical that his department will be able to meet the Treasury's demands.
Mr Hammond denied being a "hold-out" refusing to make cuts required by the Treasury, as he indicated he is very willing to make "efficiency savings" if they can be found.
"We can look for efficiency savings, which everybody should be looking for all the time, not matter how many times you have done it before you can always go back and have another look," he said.

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