Facing global challenges: supporting people through difficult times

Improving public services

 

Over the past ten years, record levels of investment coupled with reform has generated real and enduring improvements in Britain's schools, hospitals and other public services. The 2008 Pre-Budget Report continues high levels of investment to improve public services, reprioritises spending to support the economy through the downturn, and announces an ambitious extension of its plans to increase value for money in order to continue to improve public services in the years ahead.

 

The 2008 Pre-Budget Report announces:

 

• as part of the Government's fiscal stimulus bringing forward £3 billion of capital spending from 2010-11 into 2009-10 and 2008-09 for housing, education, transport and other construction projects, supporting industries and jobs across the country;
• new spending measures including additional funding for Jobcentre Plus to help people move back into work, the extension of the Support for Mortgage Interest scheme, and a new Small Business Finance Scheme for small and medium enterprises;

• the Government has over-achieved against the targets set by the Gershon Efficiency Programme, delivering £26.5 billion savings and a reduction of 86,700 civil service posts between 2004 and 2007;
• additional value for money savings have been identified through the work of the Operational Efficiency Programme (OEP) including through collaborative procurement and back office efficiencies;

• further value for money savings will be delivered within the 2007 CSR period and beyond through a set of Public Value Programme (PVP) reforms across major areas of spend;
• an additional £5 billion value for money target for 2010-11 building on the good progress towards the 2007 Comprehensive Spending Review (CSR) value for money target of £30 billion savings in 2010-11 and given the overachievement against the 2004 target; and

• assumptions for spending growth from 2011-12 onwards, with current spending growing in real terms by 1.3 per cent in 2011-12, 1.2 per cent in 2012-13 and 1.1 per cent in 2013-14; and public sector net investment moving to 1.8 per cent of GDP by 2013-14.