Budget 2010 - Protecting public services
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Issued 24 march 2010
Public services play a vital role in supporting Britain’s long-term growth
The Government has confirmed it will stick to planned levels of overall
departmental spending in 2010-11 to help support the economy as it recovers,
building on investment that has delivered lasting improvements in public
services over recent years.
From 2011-12 onwards, spending will be restrained to help halve the level of
public borrowing as a proportion of the economy over the next four years.
However, Budget 2010 confirms that the Government will protect frontline
services - in schools, 16 to 19 education and Sure Start, frontline NHS, and
police numbers - in the years to 2012-13.
The Budget also sets out further details on the tough choices the Government
is making in other areas of public spending, including:
- Budget confirms that public sector current expenditure will grow at a
slower annual rate between 2011-12 and 2014-15, alongside falling levels of
public sector net investment;
- a new Code of Practice on setting pay for senior public sector workers,
following the pay freeze for these workers in 2010-11. The Government will
also seek a one per cent cap on increases in public sector basic pay for
2011-12 and 2012-13, generating savings of £3.4 billion a year by 2012-13;
- department-by-department identification of efficiency savings underpinning
the £11 billion total saving through smarter government, halving spending on
consultants, reducing the number of quangos, and using online systems to
provide information and advice to the public;
- details of £5 billion of savings by 2012 through better targeting and
prioritising of spending, better procurement and cutting lower-priority
- reforms to the welfare system and reducing social security spending by a
further £300 million by 2013-14 on top of existing forecast savings of £1.2
The following chart shows where taxpayers’ money is spent:
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Article Published/Sorted/Amended on Scopulus 2010-03-25 10:51:23 in Economic Articles