HM TREASURY 12
                                                  17 March 1998
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     MORE MONEY FOR HEALTH, EDUCATION AND TRANSPORT

The Chancellor today announced increased investment in key
priorities next year.  An extra 500 million pounds for health and
250 million pounds for education is to be made available.  There
will also be measures on transport and regeneration.

As a result of prudent management over the past year, the
Government is now able to allocate additional funds for
investment in key priorities.

Gordon Brown said:

"Our top priorities are health and education.  Today I can
announce that our prudent management over the last year means
that, by carrying forward savings achieved in 1997/98, we can
invest extra money in these priorities next year:

-      500 million pounds for the health service;

-      250 million pounds for investment in schools and to 
       tackle skill shortages.

This builds on the additional 2.3 billion pounds on schools and
1.5 billion pounds on hospitals allocated last year.

I have also decided to reallocate additional investment in
specific transport and regeneration measures:

-      500 million pounds for transport over the next two years,
       including help for rural areas;

-      15 million pounds for the New Deal for Communities."

The results of the Comprehensive Spending Review, to be announced
in the summer, will build further on these solid foundations, by
directing spending to meet the Government's priorities for the
remainder of this Parliament and beyond


NOTES FOR EDITORS

1.     The Deputy Prime Minister, the Secretary of State for
Education and Employment, and the Secretary of State for Health
will announce further details later in the week.

2.     The Comprehensive Spending Review (CSR) was launched by
the Chief Secretary in June last year.  It is made up of 24
departmental spending reviews and 6 cross-cutting reviews,
reporting to the Cabinet Committee on Public Spending (PX) and
drawn together into one central review.  





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