Fresh spending squeeze has already begun, says George Osborne

Chancellor tells government departments to make immediate start on finding 13bn of further cuts - with goal of announcing savings by July

George Osborne has told Whitehall departments that the fresh squeeze on government spending has begun, ordering them to make an immediate start on finding the 13bn of cuts needed for the next phase of his deficit reduction plan.

The chancellor told the CBI he wanted to be able to announce savings from all spending apart from the ringfenced areas of health, schools and overseas aid in his summer budget on 8 July.

When it comes to saving money, we all know that the more you can do early, the smoother the ride

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