Free Schools and Academies Spending
Most government departments will be asked to save an extra 1% next year and a further 2% the following year.
This will then release £5bn to be spent on capital projects.
They say the government wants to spend more money on “shovel ready” building projects in an effort to kick start economic growth.
Treasury sources say £1bn will go towards building 100 new free schools and academies, creating an additional 50,000 new school places.