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.
In conducting the 2000 Spending Review, the Government has adhered to these firm spending limits, consistent with a continuing commitment to fiscal prudence and stability.
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 these areas.
