HM Treasury News Release                                      
                                                               
97/98                                        11 June 1998
-------------------------------------------------------------------    
                                
         FIRST EVER ECONOMIC AND FISCAL STRATEGY REPORT

'Stability and Investment for the Long Term', is the message of the first ever Economic
and Fiscal Strategy Report published today.  It lays the foundations for the
Comprehensive Spending Review and illustrates the Government's commitment to an
open and transparent economic and fiscal policy.

The Chancellor said:

  'Today I set out a new framework for sustainable public finances that will deliver
  modern public services for our country.  

  A month from now, on the basis of this framework, the Government will set out the
  results of the Comprehensive Spending Review with the detailed allocations to
  individual departments.  

  The central challenge is to combine prudence and stability in public finance with
  investment and reform in public services.'

The EFSR:

       provides the first key information on the outcome of the Comprehensive
       Spending Review;

       sets out a fiscal strategy and planned spending totals for this Parliament
       (Treasury Press Release 98/98);

       launches a comprehensive investment programme to invest in the renewal
       and improvement of Britain's infrastructure and public sector (Treasury Press
       Release 99/98);

       announces planned public private partnerships and a programme of asset
       sales (Treasury Press Release 99/98);

       announces a major reform of public expenditure planning and control
       (Treasury Press Release 100/98); and

       unveils a new and better format for the public finances (Treasury Press
       Release 101/98)     

NOTES TO EDITORS:

1.     Under the Code for Fiscal Stability, which is being given the force of law in the
       current Finance Bill, an Economic and Fiscal Strategy Report will be required to be
       prepared and laid before Parliament each financial year.

2.     Accompanying the Economic and Fiscal Strategy Report there are six Treasury
       Press Releases 96/98 to 101/98.


If you have access to the Internet you can find this news release at
http://www.hm-treasury.gov.uk.  Other Treasury material can also be found at this
address.

# = pounds sterling