Budget 2013: Osborne To Promise Even Deeper Spending Cuts After Election

Areas so far protected from austerity to be targeted after 2015George Osborne will pledge to introduce even deeper spending cuts after the next general election by imposing a new cap on parts of the welfare budget and other areas which have so far been immune from the coalition's austerity plans.As the chancellor served notice that Britain faces a longer-than-expected recovery, after the Office for Budget Responsibility halved its growth forecast for this year, a senior Treasury source said Osborne would promise to target so called "annually managed expenditure" (AME) in the next parliament.This accounts for about 50% of government spending – covering many areas of welfare, debt interest and EU contributions – and has largely not been targeted during the current round of spending cuts.

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