Osborne the Reaper: Budget expected to feature heavy cuts

by Mark Ranken

Chancellor George Osborne is expected to announce wide cuts to Whitehall spending in his budget address to parliament this afternoon.

Osborne intends to cut department budgets by 2% to save £2.5 billion which will be invested in programs designed to boost growth.

Osbourne's budget will be unveiled after Prime Minister's questions at lunchtime. (Image courtesy of The Telegraph)

Britain lost its coveted triple A credit rating in February this year.

Budgets for schools, health and HM Revenue and Customs will be shielded from the cuts.

Overseas, local policing and local government budgets are also expected to be untouched.

The 2% cuts are on top of 3% reductions in spending announced by Prime Minister David Cameron in August.

Reports are also surfacing that Osborne will scrap the governments proposed 45 pence per unit minimum pricing for alcohol in England and Wales.

The budget comes after the embarrassment of multiple u-turns from the government following last years budget.

Scotland, Wales and Northern Ireland will be all expected to make 1% cuts to their day to day budgets for the next two years. 

In a small piece of good news, those elderly people who lost half of their life savings after the 2000 collapse of insurers Equitable Life will receive compensation over a decade after the firms liquidation.

The chancellor will take to the floor at around 12:30 this afternoon after Prime Ministers questions.