Osborne warns UK ministers over budget cuts

British Chancellor George Osborne has warned cabinet ministers over spending settlements with the Treasury.

Osborne said ministers, who are refusing to reduce their spending, will be punished with deeper cuts if they turn down to agree to the defined settlements.

The British Chancellor is looking to find £11.5 billion in savings before making his Spending Review announcement this month while senior members of the coalition government resist further cuts to their departments.

The “clock is ticking,” said Osborne ahead of the progress report on the government-wide Spending Review.

According to the reports, the unresolved budgets include education, business, defence, transport, local government and the environment.

Last week, British Defence Secretary Philip Hammond said further defence cuts could undermine the country’s military capability, adding that he wants an “adult conversation” with Osborn over the issue.

This comes after the Chancellor announced that government departments have agreed on new spending cuts of up to 10 percent to their budgets for the 2015-2016 fiscal year.