PN:360/98                                             14 JULY 1998

DEPARTMENT FOR EDUCATION AND EMPLOYMENT
------------------------------------------------------------------

#19 BILLION BOOST FOR EDUCATION

The Secretary of State for Education and Employment, Rt Hon David
Blunkett MP, today  welcomed the results of the Comprehensive
Spending Review announced by the Chancellor.  He said:

"This is an historic day for education and for the country. The
Government is  providing an additional #19 billion for education over
the three years 1999-2000  to 2001-2002. This is the fulfilment of
our pledge that education would be our  number one priority and that
we would increase the share of national income  spent on education.
In 2002 we will be spending #11 billion more on education  than the
last administration planned to spend this year.  These additional
resources will transform standards in our education service and give
everyone in  our society the opportunity to realise their full
potential."

Our reforms will:

-     ensure a major boost to standards of literacy and numeracy by
      age 11;

-     cut truancy and exclusion by a third;

-     increase access to further and higher education for a further
500,000 people by  2002, raise levels of attainment at all levels
post-16, and increase the proportion  of those from lower income
households staying on in education.


Among the measures to achieve these ambitious goals we will:

-     introduce a new Sure Start programme to give young children the
best start in  life;

-     fund a major numeracy campaign in primary schools to complement
the literacy  campaign already underway;

-     double capital spending on schools compared with the start of
this Parliament;

-     increase access funds and pilot an Education Maintenance
Allowance for those  aged 16-18;

-     implement fully our plans for the University for Industry.


Department for Education and Employment: spending plans

Key numbers                                              budgets
£ million         1998-1999    1999-2000   2000-2001    2001-2002

Total plans       14166        15473       17295        18612
-   Current       13425        14352       15702        16670
-   Capital       741          1121        1593         1942

LEA SSAs          19384        20484       21737        23066

Total             33550        35957       39032        41678


Notes for Editors:

1.     The Chief Secretary to the Treasury announced the start of the
Comprehensive  Spending Review in a statement to the House of Commons
on 11 June 1997. The  Review had been promised in the 1997 Labour
Election Manifesto.

2.     The Review has been a searching examination of the
Department's expenditure from a  zero-base with a view to achieving
three main objectives: raising standards, ending  exclusion, and
increasing employability. Additions to DfEE Departmental Expenditure
Limit (DEL) are £1.3/3.1/4.4 billion over the next three years,
growth of 22% in real  terms.

3.     English local authorities' Standard Spending Assessment will
rise on average by 3.4% a  year in real terms (10% total).

4.     Total increase for education and employment in England of
#2.4/5.5/8.1 billion,  representing real growth, year-on-year of
4.5%/5.9%/4.2%.

5.     Spending on education across the UK in 2001-02 will be
#47.9bn, #11bn higher than  the last administration planned to spend
on education in 1998-99.

6.     Share of GDP formed by education across the UK projected to
increase to 4.9% in  2000-01 and 5.0% in 2001-02, compared with 4.8%
in 1996-97 (figures on a resource  accounting basis).

7.     The #19bn addition for education over the 3 years comprises
#16bn for England and an  assumed #3bn for Scotland, Wales and
Northern Ireland.

# = pounds sterling