Chancellor George Osborne has come under pressure to inject life into the UK economy as he prepares to unveil the 2013 Budget on Wednesday.
Osborne has ordered most government departments to make a further 1.0% cut to budgets over the next two years to allow for savings of £2.5bn to fund extra capital spending.
He said departments can afford to slash budgets because they under-spent this year by more than the average.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Start your trial
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Total annual under-spends across departments have averaged around £6.0bn since 2007. The government expects the amount underspent for 2012/13 will be somewhat higher.
Latest Videos FromMoneyWeek
The Ministry of Defence will be able to use unspent money in the last Budget to make up for upcoming spending cuts.
Ring-fenced departments, including the NHS, international aid and schools, will be unaffected.
However, departments including environment, energy, transport and justice will have to find a way to make savings.
The cuts come on top of the 3.0% spending reductions announced for the next two years in last year's Autumn Statement.
Wednesday March 20th
INTERIMS
Smiths Group
INTERIM EX-DIVIDEND DATE
Abcam, AdEPT Telecom, Berkeley Group Holdings (The), Brooks Macdonald Group, Close Brothers Group, Downing Absolute Income VCT 1, Downing Absolute Income VCT 1 'C' Shares , Dunelm Group, Foresight Solar VCT, Galliford Try, Go-Ahead Group, Haynes Publishing Group, IndigoVision Group, London Finance & Investment Group, NWF Group, Quayle Munro Holdings, Renewable Energy Generation Ltd., Waterman Group
QUARTERLY PAYMENT DATE
M Winkworth
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (EU) (09:00)
Consumer Confidence Indicator (EU) (10:00)
Current Account (EU) (09:00)
FOMC Interest Rate (US) (16:15)
Producer Price Index (GER) (07:00)
GMS
Resolution Ltd.
FINALS
AFI Development, Charles Taylor, Dolphin Capital Investors Ltd, EG Solutions, Eurasian Natural Resources Corp., Greggs, IQE, Restore, UK Commercial Property Trust
ANNUAL REPORT
GlaxoSmithKline
SPECIAL EX-DIVIDEND PAYMENT DATE
Ferrexpo
AGMS
Safestore Holdings, Throgmorton Trust, Vietnam Property Fund Ltd.
TRADING ANNOUNCEMENTS
Dolphin Capital Investors Ltd
UK ECONOMIC ANNOUNCEMENTS
Claimant Count Rate (09:30)
Unemployment Rate (09:30)
FINAL EX-DIVIDEND DATE
Access Intelligence, Anglo American, Athelney Trust, Aviva, Dairy Farm International Holdings Ltd. (Singapore), Foresight 2 VCT, Foresight 2 VCT 'C' Shares, Heavitree Brewery, Heavitree Brewery 'A' Shares, Hongkong Land Holding Ltd. (Sing.Reg), InterContinental Hotels Group, International Personal Finance, Jardine Matheson Holdings Ltd (Singapore Reg), Ladbrokes, Lancashire Holdings, Law Debenture Corp., Low & Bonar, Maintel Holdings, Mandarin Oriental International (Singapore), Millennium & Copthorne Hotels, Moneysupermarket.com Group, SEGRO, Stadium Group
