The gloomiest Budget ever? Osborne demands £2.5bn more cuts

George Osborne has asked Whitehall departments to make a further £2.5bn of cuts, as he prepares to present a gloomy Budget 2013 later today.

The Chancellor (pictured) is trying to squeeze another chunk of cash from several Ministers' departments in a two-year cost-cutting drive. The proceeds of these savings he intends to invest in capital projects designed to boost economic growth. Certain core departments including healthcare, schools, overseas aid and HMRC will be exempt from the cuts. Police and local government budgets will be spared for the first year, while defence will not feel the full brunt of the cuts. All other Whitehall departments have been told to deliver 1% savings on their day-to-day budgets for each of...