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Key Budget measures include
Maintaining economic stability
Productivity and enterprise in a flexible economy

Employment opportunity for all
Building a fairer society
High quality public services
Protecting the environment

Household income
Where taxpayers' money is spent
Further information
Visit HM Treasury Site

The Government is providing new investment to modernise Britain's public services. Last year it set plans for an extra £63 billion of spending on public services by 2005-06. Over 75 per cent of this will go on the Government's priorities of health, education, transport, housing and the fight against crime. Budget 2003 describes how the extra national insurance contributions announced last year, and paid from this month, will fund a better NHS:

• UK spending on health will rise by 7.2 per cent a year in real terms up to 2007-08, putting the NHS on a sound long-term financial footing;


• there will be significant increases in investment in IT, buildings and equipment, including the largest ever hospital building programme; and


• reforms will ensure that the NHS delivers quality services, with a new independent regulator to inspect and report on NHS performance.

The Government is determined that every pound of public spending should deliver the best possible return in high quality services and resources are therefore matched with reform. Budget 2003:

• provides £332 million for counter-terrorism work by the emergency services, on top of £3 billion to pay for military obligations in Iraq;


• promotes a better balance of economic activity across the regions, with steps to ensure that public sector wages reflect regional factors; and


• improves transparency for the public, with a regular new report on the Treasury website of government departments' performance against their targets for public service improvements.

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