In Britain, government departments have been told by the Treasury to prepare illustrative plans to cut spending by 40 per cent – as well as the expected 25 per cent – within the month. <br/><br/>Education and defence have been given some protection, and must produce plans to cut 10 per cent and 20 per cent. International aid and health budgets are being protected.<br/><br/> The government says cuts are needed to reduce the UK's 156 billion pound annual budget deficit.<br/>