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The Government is committed to providing new investment in Britain’s public services. Spending on public services will be £62 billion a year higher by 2007-08 compared with 2004-05. Around 75 per cent of this increase will be spent on the Government’s priorities of education, health, social services, transport, housing and the fight against crime. The Government is determined to secure value for money for the taxpayer and is on track to achieve efficiency savings of over £21 billion by 2007-08, including through a reduction of more than 80,000 civil service administrative posts. This will release resources for front-line services.

The 2007 Comprehensive Spending Review will set out the Government’s spending plans and priorities from 2008-09 to 2010-11 and will identify what investments and reforms are needed to equip the UK for the future. In preparation for this, the Pre-Budget Report announces:

• a new ambition of at least 3 per cent savings per year across central and local government for the 2007 Comprehensive Spending Review period, and a reduction of at least 5 per cent per year in departments’ administration budgets, releasing resources to meet the challenges ahead;

• publication of Sir David Varney’s review of public service transformation, making recommendations to join up public services and make them more efficient and responsive to the needs of users;

• a commitment for capital investment in education to rise from £8.3 billion in 2007-08 to £10.2 billion in
  2010-11; and

• funding of £84 million for counterterrorism and intelligence.

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