Improving public services
Since 1997, record levels of investment matched by reform have delivered real and lasting improvements in Britain's schools, hospitals and other public services.
The Government's short-term focus is on supporting employment and jobs through the downturn, while doing more to prepare Britain for the economy recovery. Budget 2009 announces:
- additional funding for Jobcentre Plus to help move people back into work;
- that the September Guarantee of a place in education and training to every 16 and 17 year old who wants one will be met in full - an extra 54,500 student places in the next academic year;
- a further £500 million of additional spending as part of an overall £1.4 billion package to boost Britain's low-carbon sectors, including measures to support energy efficiency and support low-carbon industries and green manufacturing;
- a £600 million package to increase housing supply
The Government will continue to invest in front-line public service priorities, alongside a stronger drive on value for taxpayer's money in order to ensure sustainable public finances over the medium term. Budget 2009 announces:
- an additional £5 billion recoverable value for money savings in 2010-11, raising the 2007 Comprehensive Spending Review (CSR) value for money savings target from £30 billion to £35 billion, with allocations to key front line public services maintained in full;
- in the next Spending Review period, additional efficiencies to help support the economy and free up resources for frontline services drawn from procurement, back office and IT, and property running costs, rising to £9 billion of additional efficiency savings by 2013-14;
- new incentives and mechanisms, with the aim of realising up to £16 billion of property and other asset sales in the three years from 2011-12, with proceeds used to supplement capital budgets.
Building on these reforms, Budget 2009 sets revised assumptions for spending growth from 2011-12 onwards which allow continued investment in public services: with current spending growing by an average of 0.7 per cent in real terms between 2011-12 and 2013-14; and public sector net investment moving to 1¼ per cent of GDP by 2013-14.