HMT12 9 March 1999 #1.1 BILLION INVESTMENT IN KEY PUBLIC SERVICES A #1.1 billion package of investment in key public services was announced by Chancellor Gordon Brown today. The investment, financed from the Capital Modernisation Fund (CMF), will boost access to high quality public services and continue the Government's drive to build stronger communities for all. The Chancellor said: "People have a right to decent, modern and high quality services. That is why the Government has already put significant resources into improving public services after years of neglect. The extra investment I have been able to announce today will help deliver a step change in the provision of public services. It will give people the help they need - when they need it. "We are investing more than an extra #1 billion to improve computer literacy, to modernise the health system and to fight crime. We are putting more money into the people's priorities; The package will provide: - up to #470 million over the next three years for an exciting new programme to provide extensive access to technology and the information age. Within the Government's national IT Strategy of #1.7bn, it will fund a network of up to 1,000 learning centres across the country, including super-specialist schools and adult computer learning centres; and help families who need a computer to learn at home; - #430 million over the next three years to modernise hospital Accident and Emergency departments and give patients better access to primary care, improving care for patients in the NHS; - #170 million over the next three years to make communities safer, funding security measures which build on the Crime Reduction Programme and provide a substantial boost to the Government's fight against crime." The national IT Strategy The Government's strategy is intended to broaden access to technology both for children and adults. It will increase computer literacy, raise standards in schools, deliver life long learning, and improve the business skills base. In turn, this will increase employability. As part of this strategy, the CMF is providing up to #470 million to finance: - a challenge fund, to be drawn down over the next three years, to create a network of up to 1,000 IT-based learning centres across the country. The centres will provide access to information technology and training in the skills of the information age. They will be based in schools, colleges, libraries and other centres and will support the University for Industry network. - a pilot project in which the Government will invite tenders to supply re- conditioned computers to families. Those on low incomes will pay only a small charge. There will also be subsidised loans for teachers to buy computers to use at home. The strategy will be underpinned by the #700 million National Grid for Learning linking 32,000 schools by 2002. In addition to Exchequer funding, the New Opportunities Fund (NOF) will provide #200 million for the necessary infrastructure to equip and network libraries and give IT access to all aspects of learning at community level; #230 million for teacher training; and further funds for training librarians. The Chancellor is also announcing in this Budget: - a tax relief for employees who are loaned computers by their employers. This will no longer be treated as a benefit in kind. - new encouragement for IT training. From 2000, everyone will be eligible to open an Individual Learning Account. ILA holders will qualify for an 80% discount on the current cost of key courses such as computer literacy, implying charges to the individual of #20 or less. To ensure coherence across these initiatives, the Chancellor has asked the Secretary of State for Education and Employment and Chief Secretary to the Treasury, in consultation with the Department for Culture, Media and Sport, Department of Trade and Industry and the Department of the Environment, Transport and the Regions to oversee a coordinating group. This will in particular drive forward the learning centres initiative, seeking the maximum participation of local authorities, companies and voluntary bodies, developing public/private partnerships and allocating funds. The Secretary of State for Education and Employment, David Blunkett, will be announcing further details shortly. Modernising health care As part of the #430 million health package, the CMF is providing #120 million in 1999-00, which will fund: - an urgent programme to modernise and improve Accident and Emergency departments in hospitals. For England, today's announcement builds on the #30 million programme announced recently, and means that all A and E departments that need it will benefit by April 2000; - improved primary care facilities so they are able to deliver faster and more convenient access for patients. Safer communities A #170 million package of investment will tackle crime hotspots. It will be jointly managed by DETR and the Home Office under the Government's Crime Reduction Programme. Scotland, Wales and Northern Ireland The Chancellor today announced that Scotland, Wales and Northern Ireland will receive total CMF funding of at least #165 million, #80 million and #50 million, respectively, for the next three years. This includes their elements of the programmes outlined above. The Secretaries of State for Scotland, Wales and Northern Ireland will announce their allocations of their remaining CMF funding, in due course. NOTES FOR EDITORS 1. Further details on these projects and other allocations from the CMF will be announced shortly. 2. The #2.5 billion Capital Modernisation Fund was set up in the Comprehensive Spending Review to support capital investment to improve public services. It initially provided #1 billion for spending in 2000-01 and #1.5 billion in 2001-02. The Government now believes there is scope for a more rapid start in these key areas and has brought forward #250 million of the Fund from 2001-02 to 1999-2000: so that the CMF allocation is now #0.25 billion in 1999-00, #1 billion in 2000-01 and #1.25 billion in 2001-02. 3. 30 per cent of primary schools and 90 per cent of secondary schools are linked to the National Grid for Learning. HM TREASURY PRESS OFFICE Press Enquiries to : 0171 270 5238 Non-media enquiries to: 0171 270 4558 If you have access to the Internet you can find this news material at http://www.hm-treasury.gov.uk. Other Treasury material can be found at this address. # = pounds sterling