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Economics focus: Spending cuts become harder to find

This month's spending review will demonstrate that the government is still dead set on reducing the deficit, reports David Smith

Important government announcements come thick and fast these days. Barely is the ink dry on the March budget when along comes the 26 June spending review. This is rightly regarded in both Whitehall and Westminster as an important moment.

The review is being conducted by Danny Alexander the chief secretary to the Treasury a Liberal Democrat and overseen by George Osborne his Conservative boss. Disputes will go to the four-man ‘quad’: Alexander and Osborne plus David Cameron and Nick Clegg. Amid talk of a crumbling of the coalition the spending review will be presented as an example of the two parties working closely together and taking tough decisions.

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