Spending cuts as economy shrinks

Link to the article: Channel 4 News

Last Modified: 20 Apr 2009
By: Faisal Islam

With the first signs of the cost of the banking bailout coming to light, this week's budget will slash up to £15bn from public spending.

Alastair Darling will outline a range of efficiency savings across Whitehall departments, with the British economy set to contract by as much as 3.5 per cent this year.

The prime minister also launched a new "strategic plan" today to lead the country out of recession. In place of the discredited banking system, there is help for businesses to invest and "go for growth".