# = pounds sterling

HM Treasury News Release
212/98                                        17 December 1998
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                PUBLIC SERVICES FOR THE FUTURE - 
            MODERNISATION, REFORM AND ACCOUNTABILITY

A revolution in the Government's approach to public services was
signalled today by the Chief Secretary, Stephen Byers, with the
publication of a White Paper on Public Service Agreements (PSAs).
For the first time, the Government is setting out its strategic
objectives for the long term in each area of Government and
targets for the progress it aims to make during the rest of this
Parliament and beyond. 

The agreements require departments to meet over 500 clear,
demanding targets.  Improvements in efficiency will release over
8 billion Pounds per year by 2001-02 in savings to re-direct into
front-line services - amounting to about 16 billion Pounds in total
over the three years from 1999-00.  Wherever possible,
performance targets are SMART - specific, measurable, achievable,
relevant and timed.

Commenting, Stephen Byers said,
    
    "Our manifesto committed us to five key pledges - on class
    sizes, young offenders, waiting lists, getting young people
    back to work, and tax - on which we said we will stand to
    be judged. Now we are setting out what the public can
    expect from across the full range of public services.

    "For too long people have focused on how much money is
    spent on public services.  It is now time to move on and
    consider the more important issue - how the money is
    spent and what people get in return for their money.

    "The old days of throwing money at a problem and hoping
    that it goes away have gone.  So has the slavish
    adherence to the belief that market forces can deliver
    the public services that people want.

    "Our approach is to ensure that the extra investment we are
    putting into public services achieves real improvements,
    that standards will be raised and the quality of services
    enhanced.

    "By setting measurable targets backed up by annual
    reports we shall be ensuring that the public knows
    exactly what progress we are making to achieve these
    ambitious and challenging targets."

Over 350 new performance targets are set out in 28 separate PSAs
covering each government department.  Moreover, as part of the
new "joined up" approach to the way Government tackles problems
where departments need to work more closely together, there are
also three cross-departmental PSAs setting out a strategic
approach to the Criminal Justice System, Illegal Drugs and help
for families with young children through the Sure Start
programme.

The new performance targets are set in terms of improvements in
services or in the results those services are designed to
achieve.  For example:

        a reduction in death rate from heart disease and stroke-
        related illness amongst people under 65 of 33% by 2010;

        to make 189,000 asylum decisions in total over the next
        three years compared with 33,700 in 1998-99;

        achieving a reduction in the long-run rate of the growth
        of crime, which has been growing on average by 5% a year
        since the 1920s;

        reducing the backlog of council house repairs by at least
        250,000 with over 1.5 million council houses benefiting
        from new investment by 2002;

        50% of 16 year olds to achieve 5 or more GCSE's at grades
        A-C by 2002.

The PSAs also set out an ambitious programme for the
modernisation and reform of government, with 175 targets for
increasing the efficiency of public services so that this money
can be reinvested in the services the public receive.  In total
over 8 billion Pounds per year will be saved and redirected to front
line services by 2001-02.  For example, the NHS has a target for
saving 1 billion Pounds a year and some 70 million Pounds year is being
released through lower unit costs in Further and Higher
Education.  The Treasury has agreed that every pound saved can
be used for other service priorities. To achieve these
improvements, departments have been asked to look specifically
at fraud, procurement and sickness absence.


NOTES TO EDITORS

1. The background to the Public Service Agreements was set out
in Chapter 4 of the Comprehensive Spending White Paper (Cm 4011)
published on 14 July 1998.

2. The Public Services Agreements are published today in a White
Paper entitled "Public Services for the Future: Modernisation,
Reform, Accountability"(Cm 4181), available from HMSO bookshops
priced 28 Pounds.