Spending Review: Osborne to reveal £11.5bn in cuts

Most Whitehall departments face budget reductions of 8% to 10% in 2015-16, but health and schools in England and the overseas aid budget are ring-fenced, reports The BBC.

The government says it has made good progress in cutting the budget deficit and that further savings are necessary.

But Labour says the coalition’s economic plan has failed.

Mr Osborne will outline the Spending Review, covering the 2015-16 financial year, in the House of Commons from 12:30 BST.

BBC political editor Nick Robinson says there will be no fresh welfare cuts, but there will be more detail of a long-term plan to cap much of benefits spending and a move to limit the payment of winter fuel allowance to pensioners who live abroad.

Spending on the NHS, schools and overseas aid will continue to be protected and the intelligence services will be the biggest winners of a spending increase, he adds.

The chancellor will also announce long-term plans to invest more in Britain’s infrastructure in building roads, railways and housing.

The next general election is scheduled for May 2015 and the Conservative-Liberal Democrat coalition has to set out its budgetary plans for the final few weeks of its time in office, irrespective of the outcome of the poll.

Labour has said that it would match the coalition’s current spending totals for the full one-year period.

On Sunday, Mr Osborne announced that the Ministry of Defence would have to shed civilian staff, but the UK’s military capacity would not be affected.