HM Treasury News Release
89/97                                        24 July 1997
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     ALISTAIR DARLING DETAILS COMPREHENSIVE SPENDING REVIEW
                                

The terms of reference for the departmental and cross
departmental reviews that comprise  the Comprehensive Spending
Review have been announced today by the Chief Secretary, Alistair
Darling, in answer to a Parliamentary Question.  The terms of
reference of the individual reviews have been placed in the
Library of the House of Commons.  Copies are available from
individual departments.  The terms of reference for the strategic
defence review, which will be the Ministry of Defence's
contribution to the Review, have already been announced to
Parliament.

Mr Darling commented that:

     "The Comprehensive Spending Review aims to allow the
     Government to bring public spending  programmes into line
     with its priorities and objectives.  It will be truly
     comprehensive, embracing all items of public expenditure. 
     It will also be focussed on the long term, looking at the
     shape of public spending to the end of the century and
     beyond.

     Ministers have agreed that they will examine each and every
     item in his or her department, to consider whether it meets
     the public interest, whether it contributes to the
     achievement of the Government's objectives, whether it is
     the most effective way of achieving those objectives, and
     whether there is scope for improving efficiency and
     effectiveness.   This will include a thorough look at
     whether the best use is being made of public assets, with
     a view to disposing of those which are surplus and which
     could be used more productively elsewhere and making more
     use of public/private partnerships.

     The Review will be thorough.  As well as looking at
     departments' spending it will also address issues that
     stretch across departmental boundaries.  There will be
     several self-standing cross departmental reviews, including
     reviews of the criminal justice system, the local
     government finance system, the countryside and rural policy
     and housing.  In addition, each department will examine
     jointly with other departments those areas where important
     issues cut across departmental boundaries, such as aid and
     trade provision, science and simplifying government.

     This will be a far-reaching look at what the Government
     spends peoples money on.  It will ensure that public
     spending promotes opportunity and employment, investment
     and fairness. Its conclusions will be the basis for
     spending plans for the future that  reflect our priorities
     and meet the country's needs."





Notes to Editors

1.   The Comprehensive Spending Review was announced by the Chief
Secretary in the House of Commons on 11 June.

2.   There are two elements: separate departmental reviews and
cross-departmental reviews (looking at issues that reach across
departmental boundaries); and a review of the Government's
spending as a whole - a Cabinet sub-committee called PX will
appraise the results of the separate reviews and make
recommendations to Cabinet.

3.   The Review is expected to take about a year.

4.   A full set of the terms of reference is available to the
press from H.M.Treasury.

5.   If you have access to the Internet you can find this release
and the TORs at the Treasury Internet Site, http://www.hm-treasury.gov.uk.   
Material on other Treasury matters can also be found at this address.