26/06/2013 BBC News at Ten

spending cuts, affecting benefit claimaints, public sector workers

and expat pensioners. The Chancellor unveils his spending plans for 2015,

against the backdrop of low growth and high debt. The new round of cuts

amounts to �11.5 billion, but England's schools, Health Service

and overseas aid are protected. While recovery from such a deep

recession can never be straightforward, Britain is moving

out of intensive care and from rescue to recovery.

The scale of the extra cuts the Chancellor has announced today to

our police, defence and local services are the direct result of

his abject failure to get the economy to grow. We'll be asking if

all this changes the political prospects leading to the next

election. Also tonight: At the US Supreme

Court a significant legal victory for American supporters of gay

rights. Three people are shot dead on the

Costa del Sol. At least one of them is thought to be British.

Julia Gillard, Australia's first female Prime Minister, is to leave

politics, defeated in a leadership contest by her predecessor, Kevin

Rudd. What I am absolutely confident of is it will be easier for the next

woman and the woman after that and the woman after that, and I'm proud

of that. And the fall of the favourites at

Wimbledon. Roger Federer is out, along with Maria Sharapova, who

complains about the condition of the Good evening. The Chancellor has

outlined his spending plans for the financial year 2015-16, and they

include a range of spending cuts, amounting to �11. 5 billion but

there'll be extra spending on roads, railways and housing. Millions of

public sector workers will lose their automatic pay rises. There'll

be a cap on total welfare spending, and a new squeeze on the budgets of

most Whitehall departments. George Osborne claimed that Britain was

moving out of intensive care and from rest cue to recovery, as our

political editor, Nick Robinson, reports.

When the men at the Treasury wrote what became known as plan A, what

happened today was no part of it. They used to say they could cut

spending and cut the deficit by the time of the next election. But today

the Chancellor and his Liberal Democrat deputy were forced to

return to ask for more. More cuts for one more year, with the prospect

of yet more to follow. An age of austerity that now looks like

lasting well, an age. We have to deal with the world as it is, not as

we would wish it to be, so this country has to continue to make

savings. These are difficult decisions that will affect people in

our country. But there never was an easy way to bring spending under

control. George Osborne claimed the British economy was healing, but

without more cuts would go back into what he calls intensive care. The

result of cutting another 11. . 5 billion will, he predicted be, the

loss of another 140,000 public sector jobs. Though he says private

sector jobs are growing faster. It will mean a further squeeze on pay,

with Ministers trying to scrap automatic rises based on how long

people have worked. The biggest lairs once again, local councils,

with a 10% cut that won their Minister this praise. My right

honourable friend the Communities Secretary has set an example to all

his colleagues in reducing the size of his department by 60% and

abolishing 12 quangos. He is the model of lean government.

A few budgets are protected from the new punishing regime. Health

spending increases. Just. International aid continues to grow,

and the schools budget goes up too. Inside Whitehall departments civil

servants are calculating what their cuts will really mean. �400 million

from universities will lead to grants being frozen, so what about

�400 million from the courts and prisons? And millions more from the

police. The Chancellor claims that the bleak predictions never in fact

come to pass. Every difficult choice taken has been opposed think vested

interests and those who got Britain into this mess in the first place.

We will not let-up. I will not let that happen. The reform will

continue. Those who fought the cuts hardest were dubbed the NUM, or

national union of Ministers. They secured increases on science, on the

intelligence services and a bit of protection for the Armed Forces. But

once again the Government chose welfare for its next political

battleground. A new overall limit on most welfare spend willing be

introduced. Oh, on the eve of on election. Winter fuel allowance will

be cut for ex-pats living in warmer climes, and job seekers will have to

wait seven days to sign on and they'll have to learn English. All

that was a recipe, the Chancellor said, for... It is an economy that

prospers, a state we can afforders, a deficit coming down and a Britain

on the rise. I commend this economic plan to the country.

We all know people don't like it when we say I told you so, but there

is little doubting that that is exactly what Ed Balls does think

promised to balance the books and that promise is in tatters. Failed

tests, broken promises. His friends call him George. The President calls

him Geoffrey. But to everyone else, he is just Bungle, Mr Speaker.

you are not in on the joke, Bungle used to be a character on children

's television. That though was where the Lafferty stopped. More cuts to

the police. More cuts to our defence budgets. More cuts to our local

services. This out of touch Chancellor has failed on living

standards, growth and the deficit, and families and businesses are

paying the price for his failure. Not on his list were cuts to the

budgets for Northern Ireland, Wales and Scotland. All squeezed by 2%,

all condemned by the nationalists. More cuts, deeper cuts, continuing

to 2018. He is taking consumption out of the economy, 8% of GDP. He is

still strangling growth. This was not the Spending Review this country

needed. Last night on the eve of announcing his take aways, George

Osborne tweeted a picture of himself eating one, as he wrote today's

speech. Many who depend or who work in the public sector will now be

wondering how all that will affect them. One thing we all know is that

this is almost certainly not the end of the cuts.

So, how should today's overall plans be seen in the context of the

Government's dominant strategy of cutting the deficit? Stephanie

Flanders is with me. Today's review is happening because instead of

filling the hole in the budget in five years, as the Chancellor always

hoped, the state of the economy means he will have to do it over

seven or eight. And the Government's now looking to cut spending of

Whitehall departments by over 18% by 2018. That still accounts for half

of all Government spending but their Governments will have already shrunk

by 9% after inflation by the end of this inflation. Today's cuts for

2015-16 will give the Chancellor another 2. 8%. And that won't be the

end of it, at least on current plans. The Chancellor today

announced the planned cuts for 2015-16. There are two more years of

cuts planned after that general election. The Chancellor's pencilled

in plans for Whitehall departments to do the heavy lifting in those

years too, with a further cut after inflation after nearly 8%. But many

think the next Government will end up using tax rises to do some of the

work. After all, that's usually what happens after elections. I think

less growth, we could well see tax rises after the next election.

Perhaps of the order of �8 billion based ton plans the Chancellor's set

out. What we know for sure is that Mr Osborne's austerity programme has

already changed the shape of government, with the decision to

protect big departments like the NHS, and the schools budget, leaving

a smaller and smaller share for everything else. By the end of the

first year of the next Parliament spending on local government,

business, the Home Office and justice will all have fallen by more

than 30% since 2010. Over that period the NHS budget will have

risen slightly in real terms and spending on social security and tax

credits will have gone up by about 7% after inflation. And that is if

everything goes according to plan. The turbulence in world markets is a

reminder there are wildcards at the heart of Mr Osborne's plans. If

investor nervousness keeps pushing up Government borrowing costs he

could pay more in debt interest than he's saved in today's cuts. Bond

markets have start it to weaken by interest rates have started to rise.

If you borrow �100 billion a year, interest rates rising dramatically

will have a knock-on effect on the Government's finances. The other

wildcards are the economy and the Office for Budget Responsibility. If

the OBR changes its view of our long-term economic potential, like

it did a couple of years ago, a that would again change the hole in the

budget the Chancellor has to fill. It might turn out the next

Government has to squeeze even more than expected, or it could mean we

didn't need this latest round of austerity at all.

Stephanie, thank you. The latest package of cuts means

that local authorities will need to make more difficult choices between

those services which have been protected and those which are more

vulnerable. Danny Savage has been talking to people in Sheffield today

about the impact of today's announcement. Sheffield, a place

which took a ham hearing when manufacturing industry declined and

described today by the Prime Minister as a fantastic city. But

like many places, budget cuts have taken their toll. There was football

going on, the gym was full... this leisure centre, mothballed by

the council in the hope that community volunteers will make it

work. We are already having to stop things we want our children to do.

We are going to have more and more empty buildings with nothing for

people to do, in a day and age we are told we've got to keep fit, to

cut obesity, but we'll have nowhere to go. About 20% of Sheffield's

workforce is in the public sector. So many of them won't welcome

today's news that automatic pay increments are being axed. Such

increments have been frozen at the City Council for years. It has

brought real problems for many of our members. It has created more

morale in many areas. People were expecting to get pay rises because

of the work they've been doing, and that is no longer there. A few miles

out of the city greengrocer Andrew is hard at work. As a young lad I

used to dream about my own shop. feels that public workers still have

a good deal and the Government is going in the right direction.

they are doing is right, and especially with puck over. They have

got to -- with the public sector. They've got to tighten the belt, so

to speak, like us. When it comes to pension and holidays what do you

get? No pension. A week's holiday. And sick leave? No. Not at all.But

what about today's announcements that affect the wired population?

Like Government money to keep council tax frozen. I can't pay any

more basically, so the price being the same is good. I would rather pay

a bit more and keep the services. cap on welfare, what do you think?

Probably good overall, not knowing the full details of it, but there

has to be a limit. Most people here know these budget restrictions have

to be faced. But hope the hard times will eventually bear fruit.

Nick Robinson is in Downing Street for us. Stephanie has been telling

us about the financial calculations. How do you see the political

calculations? What was striking is that today's announcements were all

timed for 2015. Of course, that's the timing of the latest round of

spending cuts, but it is the timing of something else as well - the

general election, of course. What I think George Osborne was trying to

do, in today, in a sense, was trying to snatch political Vic frit jaws of

economic defeat. -- victory from the jaws. In other words win the

argument with labour once and for all about carrying on to cut the

deficit even though he said he was announcing cuts that wouldn't be

needed because the deficit would, by now, he said, be under control. He

believes the debate is very firmly on his turf. That he is making cuts

dha were once politically unthinkable, let aLen actually do

aabout. -- making cuts that were. Balls sees it very differently. He

thinks, this is the moment the country will have concluded that the

cuts were are the Government's own fault, not the fault of external

economic circumstances. The election, of course, will be the

chance for people to settle that argument once and for all. The

politics, therefore, maybe fairly foreseeable. One thing that is not,

is the economics, which is why there are more cuts being made today and,

of course, it's also why, behind the scenes, all the political parties,

are thinking about the next round of cuts, and also the possibility of

tax rises, too. Thank you very much.

By the way, you can find out much more about today's Spending Review

and how it might affect people in different circumstances. Log on to

different circumstances. Log on to overturned a law which denied

federal recognition of same-sex marriages. The Defence of Marriage

Act, which was passed back in 1996, meant than gay couples weren't

entitled to federal benefits and couldn't seek the same tax releafs

as heterosexual couples. -- relief. President Obama welcomed the

decision. A moment of joy, even ecstasy.

Rulings from the Supreme Court have redefined America. Today marks

another turning point. This time for gays and lesbians. The fight for

equality continues but we are a giant leap closer to it today.

a proud day to be an American and understand that the highest court in

our land has validated our relationship. This is a huge day for

a significant proportion of the American population. But the court

has not legalised gay marriage. That's something that's organised at

state level here in America. Instead, it's ruled that the federal

federal government can no longer discriminate against gays and

lesbians when it comes to taxes and benefits. For Major Shannon

McLaughlin, it is a big deal. She can shop in the discounted

supermarket on the military base. But her wife, recognised under state

law, can't get any military benefits Right now she cannot get on base, at

all. It is as if she is a stranger to me. She has no affiliation, under

the eyes of the law, with being able to access any benefits. Shannon has

been married to Cassey for three years. They've had twins together

and they share, she says, the ideals of the average American. We work

hard. We stand up for what we believe in and we are bring bringing

forth good citizens. I don't know any other definition of marriage

than that. I don't know why, because we are the same gender, we should be

excluded. An increasing number of Americans agree. Up until the late

'80s, practically no-one supported gay marriage. That's changed with

astonishing speed. There's still resistance to the idea but overall,

opinion is pretty evenly split. President is on the line from Air

Force One. The court also rejected an attempt to enforce a ban on

same-sex marriage in California. The winners in that case got a call from

winners in that case got a call from President Obama, in the air. We are

proud of you guys. Things, the President told them, are heading the

right way. This remains a divisive issue. But a landmark judgment has

today changed America. In the past few minutes the South

African President, Jacob Zuma has announced he is cancelling a planned

visit to Mozambique tomorrow after visiting Nelson Mandela in hospital

today. Mr Mandela, who is 94 is being treated for a persistent lung

condition. He is still in a critical condition. Mr Zuma said doctors are

doing everything they can to ensure his comfort and well-being.

The Foreign Office is liaising with police in Spain, after claims that

three family members have been found shot dead on the Costa del Sol. They

were discovered inside a property in the popular holiday resorted of

Mijas near Marbella. Media reports in Spain have reported the dead

people were a couple and their daughter who was in her tos. Sarah

Campbell is with me. What more do we know? We understand one member of

the family was British and they have been living in this apartment for a

few years. It is a very popular area. The alarm was raised by their

landlord. He had become worried because he hadn't seen them for a

few days. When heentered the apartment, acourting to reports, he

found a man dead in the sofa. He called the plains they found the

mother and daughter, who were dead in the bedroom. Neighbours are

reporting they heard gunshots three days ago. We now understand the

police ark looking at this as a potential murder/suicide. Some

reports from Spain have said the daughter had Down's syndrome. That

hadn't been officially confirmed. What we have had officially

confirmed is a statement by the Foreign and Commonwealth Office

saying they are aware of the incident, they are liaising with

local police and will provide consular assistance.

Julia Gillard, the Australian Prime Minister, says she's leaving

politics after being defeated in a leadership challenge by Kevin Rudd,

her great rival and the man she ousted three years ago. Miss

Gillard, the first female Prime Minister in the country's history,

said sexism had played a part in the outcome. Our report does contain

some flash photography. Julia Gillard broke through a

ceiling made of particularly resilient glass when she became

Australia's first woman Prime Minister. Most Australians were

comfortable with the idea, but a significant minority were not. She

also had another problem. The man she ousted as leader. For years,

Kevin Rudd has been plotting his revenge and today his plan came to

fruition. With the polls pointing to a

landslide defeat for her government, there has been months of speculation

surrounding her leadership. She called a ballot, a gamble that

backfired. She believes her gender was a factor. It will be easier for

the next woman and the woman after that and the woman after that and

I'm proud of that. Kev Rudd is hated by many in his party but he is

popular with the people. -- Kevin Rudd. There's seldom been a comeback

like it. In 2007 the Australian people elected me to be their Prime

Minister. That is a task that I resume today with humility, with

honour and with an important sense of energy and purpose. This has been

an ugly faus in Australian politics -- ugly phase, with Julia Gillard

subjected to an unusually high level of personal vilification. She was

the subject of crude jokes about her body shape and was asked in a live

radio interview whether her partner was gay. It is absurd.You can

confirm he is not. Don't be ridiculous. Of course not. Are you

in a heterosexual relationship, that's all I'm asking nchtsd we have

just talked about that. Howard that's bordering - let me just bring

you back to earth. But at times she herself has put

gender at the centre of the debate. I was offended when the Leader of

the Opposition went outside in the front of Parliament and stood next

to a sign that said "ditch the witch" I was offended when the

Leader of the Opposition stood next to a sign that described me as "a

man's bitch." This week she was attacked for a photo shoot, knitting

the royal baby a toy kangaroo. For one of Australian's leading men,

it's been an unedifying speck tack yenchts there has been a lack of

galantry, not just in politics but the way it is reported. The end of

Julia Gillards with not primarily about her gender. It also speaks

about Australia's brute 58 political culture where leadership coups are

commonplace -- brutal political culture. It is like a soap opera,

but directed by Quentin tan teen yoe.

European leaders are meeting tomorrow to discuss the problems

posed by unemployment. There are 26 million people unemployed in the EU,

seen as a threat to the stability of the union. 5. 5 million of those

unemployed, around one-fifth, are under 25. Gavin Hewitt reports on

how tens of thousands of young Europeans are on the move in search

of work. It's Europe's new migration. Tens of

thousands leading their countries in search of work. Here in Portugal,

unemployment is at 18% and rising. Sophia lost her job this week and is

planning to move to Brazil. There are going to be those bad days when

I want some help from my family, for them to listen to. They will be far

away. Her friend, Nelson, has seen half his friends leave Portugal. So,

already, half your friends... of my friends. They have left?They

left. Because they were waiting for some new changes in Portugal but it

didn't happen until now. I don't think it'll change soon. 7.45am and

already over 100 people are lining up outside the consulate of Angola,

a former Portugese colony. Many are moving there for work and many of

them are Portugal's best and brightest. TRANSLATION: There are

all kinds here but perhaps more highly-qualified people. Company

directors. Some of whom will take people with them. It's not just a

case of young, unemployed people looking for work outside Europe.

Tens of thousands are on the move inside Europe itself and many of

them see Germany as their best hope of finding employment.

The new European migration shows that 45,000 Italians moved to

Germany last year. 37,000 Spaniards also left for Germany. And in

Greece, 120,000 professionals, including doctors and engineers,

have left the country since the crisis began.

Near Dusseldorf in Germany, mark is an engineer heading to work in a

chemical plant. He was born and grew up in Barcelona in Spain, but

recently, weary at the lack of were spects at home, he has put --

prospects at home, he has put down his roots in western Germany.

are many people from Spain and southern Europe who live around me.

I see myself a couple of years in Germany at least. Definitely working

in Germany and living here, yes. concern in parts of southern Europe

is of a brain drain, depriving countries of their most qualified

workers. In Portugal, where great discoverers once left these shores,

the irony is that unemployment is driving many to seek work in far

away places they once colonised, with a new generation agonising over

departure. Some tennis now and Roger Federer,

the defending champion, is out of Wimbledon, beaten this evening by

Sergiy Stakhovsky, the world number 116 from Ukraine. It's Federer's

earliest defeat at Wimbledon for 13 years. The former women's champion,

Maria Sharapova was also knocked out today and a record number of players

have pulled out of Wimbledon because of injury.

Wimbledon has seen plenty of shocks, but nothing as sighs Mick as this.

Roger Federer, champion, hero, for many the greatest ever, against

Stakhovsky starks the world number 116. -- Sergiy Stakhovsky. Surely

only one outcome and Federer duly took the first set. Business as

usual. But from there, the tennis world was turned upside down. As

Stakhovsky, unbelievably, came roaring back. The journeyman now

playing like a giant. He reeled off the next two sets. Centre Court

simply stunned. COMMENTATOR: Sensational. Surely it

couldn't happen? But after three hours of jaw-dropping tension, it

hours of jaw-dropping tension, it did. The ultimate underdog had

pulled off the ultimate upset. Federer's earliest Grand Slam defeat

in a decade. Like everyone else, he was struggling for answers. I had my

opportunities. I had a foot in the door. When I had the chance, I

couldn't do it, you know. It was very frustrating. Very

disappointing. I'm going to accept it and move forward from here.

fans streaming away from Wimbledon can scarcely believe what they've

seen. Roger Federer, the darling of Wimbledon, is out. An extraordinary

end to a day of drama and controversy. Earlier there has been

complaints about the grass. This court is dangeous - claimed Maria

Sharapova as she slipped to defeat. -- dangerous.

A recordp seven players pulled out through injury today, including

Victoria Azarenka after this fall on Monday. The organisers insist the

courts are in excellent condition, Azarenka wasn't so sure. The court

wasn't in a very good condition that day. My opponent fell twice. I fell

badly and there are some other people who fell after. I don't know

if it is the court or if it is the weather. I can't figure it out.