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Building contracts 'to be queried'

The new Conservative-Liberal Democrat administration is concerned about school-building contracts that were rubber-stamped by the previous Labour government weeks before the General Election, reports have claimed.

Deals for school buildings worth £240M and concerns over the multibillion pound cost of nuclear power plant decommissioning are said to be worrying ministers.

The reports came after an independent audit of government spending was announced by chancellor George Osborne, when ministers said they discovered “black holes” in the budget left behind by the previous administration.

Osborne is to give an emergency budget by the end of June and the spending review, to be carried out by the new Office of Budget Responsibility under Sir Alan Budd, will be carried out in the summer months.

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