In the March 2000 Budget the Government set the overall public expenditure
ceilings for the spending period 2001-2 to 2003-4 consistent with the
fiscal rules. This showed that resource spending would increase by 2.5%
a year in real terms, in line with the Governement's neutral view of
the economy's trend rate of growth; and that net investment would more
than double, rising 1.8% of GDP by 2003-4.
the 2000 Spending Review, the Government has adhered to these firm spending
limits, consistent with a continuing commitment to fiscal prudence and
On Tuesday the 18 July the Chancellor Gordon Brown set out the results
of the Spending Review covering the period 2001-2 to 2003-4. He set
out the key improvements in the the public services that the public
can expect over this three year period and describe how the Government
will allocate its funds to achieve these improvements.
As part of the 2000 Spending Review, Departments have prepared new Public
Service Agreements detailing the outcomes which they will deliver with
the money they are being allocated. The number of PSA targets has been
reduced, with Departments being asked to focus on a smaller number of
key strategic objectives.
A separate White Paper on PSAs will be published shortly after the announcememts
of the Transport and Health plans, which will incorporate the PSAs for