The new cabinet: the full list

A full list of David Cameron's new ministerial line-up.

Prime Minister, First Lord of the Treasury and Minister for the Civil Service - David Cameron

Deputy Prime Minister, Lord President of the Council - Nick Clegg

Secretary of State for Foreign and Commonwealth Affairs - William Hague

Chancellor of the Exchequer - George Osborne

Chief Secretary to the Treasury - Danny Alexander

Lord Chancellor, Secretary of State for Justice - Chris Grayling

Secretary of State for the Home Department - Theresa May

Secretary of State for Defence - Philip Hammond

Secretary of State for Business, Innovation and Skills - Vince Cable

Secretary of State for Work and Pensions - Iain Duncan Smith

Secretary of State for Energy and Climate Change - Edward Davey

Secretary of State for Health - Jeremy Hunt

Secretary of State for Education - Michael Gove

Secretary of State for Communities and Local Government - Eric Pickles

Secretary of State for Transport - Patrick McLoughlin

Secretary of State for Environment, Food and Rural Affairs - Owen Paterson

Secretary of State for International Development - Justine Greening

Secretary of State for Culture, Olympics, Media and Sport; and Minister for Women and Equalities - Maria Miller

Secretary of State for Northern Ireland - Theresa Villiers

Secretary of State for Scotland - Michael Moore

Secretary of State for Wales - David Jones

Minister without Portfolio - Ken Clarke

Minister without Portfolio - Grant Shapps

Leader of the House of Lords, Chancellor of the Duchy of Lancaster - Lord Strathclyde

Leader of the House of Commons, Lord Privy Seal - Andrew Lansley

Minister for the Cabinet Office, Paymaster General - Francis Maude

Attorney General – Dominic Grieve

Chief Whip (Parliamentary Secretary to the Treasury) - Andrew Mitchell

Jeremy Hunt was promoted from Culture Secretary to Health Secretary in David Cameron's first major cabinet reshuffle. Photograph: Getty Images.
Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR