Picking up David Laws’ axe at the Treasury was never going to be easy – but all
credit to Danny Alexander, who seems to be managing it with some degree of gusto. After those extra savings he announced a few weeks ago, the Chief Sec has now written to ministers asking
them to identify cuts of up to 40 percent in their budgets. I repeat: 40 percent. That’s higher
than the highest roundabout figure I heard before the election (30 percent, from civil servants as it happens). And it tops the 33 percent that the IFS suggested might be necessary last week. Quite a few
ministers will be quaking at the very thought of it.
In truth, though, the 40 percent figure is “worst case scenario” territory. The various departments are also being asked to prepare for a “best case scenario” of 25 percent, while education and defence face lower cuts of between 10 and 20 percent, and health and international development are being spared the axe completely.
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