The Government’s objective is to build a strong economy and a fair society, where there is opportunity and security for all. The 2007 Pre-Budget Report and Comprehensive Spending Review (CSR), Meeting the aspirations of the British people, presents updated assessments and forecasts of the economy and public finances, describes the reforms that the Government is making to achieve its goals and sets out the Government’s priorities and spending plans for the years 2008-09, 2009-10 and 2010-11.
These plans include:
- Investing in the future, with total public spending rising from £589 billion in 2007-08 to £678 billion in 2010-11, an average increase of 2.1 per cent per year in real terms, including an addition of £2 billion to the plans set at Budget 2007 for capital investment in public services.
- Continuing the sustained investment in the NHS, with resources increasing from around £90 billion in 2007-08 to £110 billion by 2010-11, an average real increase of 4 per cent a year, which alongside value for money savings of at least £8.2 billion will fund the conclusions of the Darzi Review to build a health service fit for the 21st century.
- Further sustained increases in resources for education, science, transport, housing, child poverty, security and international poverty reduction as well as fully funding the 2012 Olympic Games and Paralympic Games.
- Continuing to modernise the tax system by ensuring that all married couples and civil partners can benefit from double the inheritance tax allowance - £600,000 immediately, rising to £700,000 by 2010-11 - in addition to the entitlement to full spouse relief, and by announcing a major reform of capital gains tax, introducing a single rate of 18 per cent from April 2008, ensuring a more sustainable system that is straightforward for taxpayers and internationally competitive.
- Taking steps to protect the environment, including by reforms and increases to the tax regime for aviation and a new Environmental Transformation Fund worth £1.2 billion over the CSR07 period.
Transforming public services
Over the last ten years the Government has laid the foundations for improved public services – with sustained investment, more frontline professionals, increased efficiency and rigorous performance management raising standards and outcomes. The challenge now is to continue this progress by creating world-class public services that respond to people’s rising aspirations and equip the UK for global change.
The 2007 CSR therefore launches a new strategy for transforming public services over the decade ahead.
For more information on the CSR and pre-budget report please use the documents and internet link below.
