Chancellor reveals spending review

<p>George Osborne has revealed the UK’s spending plans.</p>

The UK's spending plans for another 12 months have been revealed by the chancellor.

George Osborne revealed an increase in capital spending of £3 billion a year in an address made to the House of Commons, with budgets for the financial year from 2015 to 2016 laid out.

It was also announced by the chancellor that the government is set to make another £11.5 billion of savings in a bid to cut the budget deficit.

Spending on health, schools and overseas aid will continue to be protected, it was confirmed by chief secretary to the Treasury Danny Alexander.

The £3 billion a year of extra capital investment is going to be used on "infrastructure and supporting economic growth at the same time as ensuring a sustained reduction in the deficit", said the Treasury.

Last month, the chancellor confirmed he is considering selling shares in Lloyds and the Royal Bank of Scotland (RBS) to raise funds for the government.

RBS is currently 81 per cent owned by the taxpayer, while the government has a 39 per cent stake in Lloyds.

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