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High quality public services

The Government is committed to providing new investment in Britain’s public services. Spending on public services will be £61 billion higher by 2007-08 compared with 2004-05. Around 75 per cent of this increase will be spent on the Government’s priorities of education, health, social services, transport, housing and the fight against crime. The Government is determined to secure value for money for the taxpayer and is on track to achieve efficiency savings of over £21 billion by 2007-08, including a reduction of more than 80,000 civil service administrative posts.

The 2007 Comprehensive Spending Review (CSR) will set out the Government’s spending plans and priorities from 2008-09 to 2010-11 and will identify what investment and reforms are needed to equip the UK for the future. Over the CSR period, the new ambition of 3 per cent value for money savings per year across central and local government, together with 2 per cent growth per year in public spending, will enable the Government to improve further front-line services. This Budget announces:

• education spending in the UK will rise to £90 billion by 2010-11. This means that education spending will rise to 5.6 per cent of GDP by 2010-11, reflecting the high priority this Government attaches to education; and

• a further £86 million to strengthen the fight against terrorism.

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