Decc resource budget cut by 8%

The Department of Energy and Climate Change (Decc) will have its resource budget cut by 8 per cent.

Chancellor George Osborne announced the £83 million cut to the department’s resource budget, which comes into force for 2015/16. He told a packed House of Commons: “We will provide the energy of the future at a price we can afford.”

He also said that the government will make planning and tax changes that will put Britain at the “forefront of shale gas exploration”.

A Decc spokesperson said: “This is a fair settlement for Decc, under which the department will make a contribution to the government’s wider fiscal goals.

“By focusing on efficiencies, the settlement enables Decc to continue with the programme of reforms that we are putting in place to stimulate the low carbon economy.”

The spokesman added: “The department also remains committed to delivering value for money for taxpayers. Efficiency savings will be delivered by re-negotiating contracts with our suppliers and as our major programmes.”

The chancellor also announced that the Department for Environment, Food, and Rural Affairs will have its resource budget cut by 10 per cent (£180 million).

The cuts are part of £11.5 billion of savings announced today, with Osborne proudly saying that £5 billion of this has been made through efficiency savings.