----------------- ----------------- |  | | Last Updated: Monday, 12 July, 2004, 17:10 GMT 18:10 UK |
At-a-glance: spending review
| | Here are the key points of Chancellor Gordon Brown's spending review statement setting out government spending plans for the next three years. Total spending Mr Brown said overall departmental spending would rise by �61bn to �340bn in 2007/8.Civil service jobs Gross cuts of 84,150 civil service posts by 2008 to free up resources for "front line" investment. A further 20,000 posts will be cut in Scotland, Wales , Northern Ireland and English local government. 20,000 civil servants to be relocated from London and south-east England to regions including South Wales and Yorkshire. Mr Brown said the job cuts, plus other efficiency measures, would help save �21.5bn a year.A plan to cut uncertified sick leave in the civil service is to be published. Mr Brown set a new target of selling off �30bn worth of government assets by 2010.National security and defence Overall spending on national security to more than double from �950m to �2.1bn by 2007/8, including recruiting 1,000 extra intelligence officials. The total defence budget would rise by �3.7bn to �33.4bn by 2007/8 - a real terms increase of 1.4% Diplomacy The Foreign Office is to receive 1.4% a year extra above inflation. The budget for the BBC World Service and the British Council will also increase.Overseas aid The total international development budget to rise from �3.8bn to �5.3bn by 2007/8 - an average real terms increase of 9.2%. Mr Brown said Britain's aid budget would reach the United Nations' target of 0.7% of gross national income by 2013 - or possibly even by 2008.Help to Africa for health, education and fighting poverty by 300% to �1,250m by 2007/8.Science Government spending on science will rise from �3.9bn this year to �5bn by 2008. The money will go towards science teaching, improving salaries for graduate scientists and generating more science link-ups with business.Health Health spending will rise by 7.1% over the next three years. Mr Brown said his plans would allow another 160,000 very elderly people to install care alarm systems in their homes. �1.5 billion to be given to the developing world to promote treatment and cures to tackle the "scourge" of HIV/Aids. Local government Mr Brown said spending on local government would rise by 2.7% a year above inflation for the next three years. Local councils will get three-year budgets to help them plan ahead. Transport Transport budget will rise from �10.4 billion this year to �12.8 billion in 2008. Housing and regeneration The chancellor promised a 50% rise in social housing by 2008. There will be a �525m-a-year boost to the neighbourhood renewal fund for urban regeneration. Environment spending will rise by �300m to �3.5bn by 2007/8.Law and order The home secretary will be announcing plans to have 20,000 community support officers by 2008. There will be a �30m fund for crime victims. Mr Brown said there would be a new fund to finance "community-based methods" to tackle anti-social behaviour and provide facilities for young people.Education and childcare Education spending will increase from �63 billion to �77 billion. �100m from capital funds will go towards building new children's centres. The government is to pilot the extension of free nursery education to two-year-olds in 500 areas of the country. Free public access will be extended to university museums. Tory response Shadow chancellor Oliver Letwin said the chancellor's plans were a recipe for "fat government". Mr Letwin said the spending plans would mean third term tax rises from Labour. He said: "While ministers have been preaching about obesity, their departments have been getting fat on taxpayers' money."Mr Letwin said that only 14,000 out of 88,000 new schools staff in the last year were teachers or teaching assistants. The Tory spokesman accused Mr Brown of wasting �21.5bn of taxpayers' money. Liberal Democrat response Lib Dem Treasury spokesman Vince Cable welcomed proposals for cutting waste but said the government's plans "strained public credibility". He compared Tory "slash and burn" policies to Labour's more cautious "trim and singe".Mr Cable said clear choices had to be made to fund priority areas, such as cutting industrial subsidies or plans for ID cards. The Lib Dem spokesman asked how many ministers and departments were being axed in the efficiency drive. Mr Cable concluded by accusing the government of producing an arbitrary savings target and then deciding what should be cut. Backbench contributions Former Tory Chancellor Ken Clarke said his successor was trying to sound like he was announcing a pre-election spending spree while doing the opposite. Mr Brown denied claims the government planned to contract out work to private firms when axing posts. Asked if there could be closure of army regiments or troop cuts, the chancellor said precise decisions for the make-up of British forces would be for the Ministry of Defence. Labour backbencher John McDonnell raised worries from the Public and Commercial Services union as he said the civil service cuts would affect service delivery.
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