£1.1 BILLION INVESTMENT IN KEY PUBLIC SERVICES

A #1.1 billion package of investment in key public services was
announced by Chancellor Gordon Brown today.

The investment, financed from the Capital Modernisation Fund (CMF),
will boost access to high quality public services and continue the
Government's drive to build stronger communities for all.

The Chancellor said:

      "People have a right to decent, modern and high quality
      services. That is why the Government has already put
      significant resources into improving public services after
      years of neglect. The extra investment I have been able to
      announce today will help deliver a step change in the provision
      of public services.   It will give people the help they need -
      when they need it.

      "We are investing more than an extra #1 billion to improve
      computer literacy, to modernise the health system and to fight
      crime. We are putting more money into the people's priorities;

The package will provide:

      - up to #470 million over the next three years for an exciting
      new programme to provide extensive access to technology and the
      information age. Within the Government's national IT Strategy
      of #1.7bn, it will fund a network of up to 1,000 learning
      centres across the country, including super-specialist schools
      and adult computer learning centres; and help families who need
      a computer to learn at home;

      - #430 million over the next three years to modernise hospital
      Accident and Emergency departments and give patients better
      access to primary care, improving care for patients in the NHS;

      - #170 million over the next three years to make communities
      safer, funding security measures which build on the Crime
      Reduction Programme and provide a substantial boost to the
      Government's fight against crime."

The national IT Strategy

The Government's strategy is intended to broaden access to technology
both for children and adults. It will increase computer literacy,
raise standards in schools, deliver life long learning, and improve
the business skills base. In turn, this will increase employability.

As part of this strategy, the CMF is providing up to #470 million to
finance:

-    a challenge fund, to be drawn down over the next three years,
      to create a network of up to 1,000 IT-based learning centres
      across the country. The centres will provide access to
      information technology and training in the skills of the
      information age. They will be based in schools, colleges,
      libraries and other centres and will support the University for
      Industry network.

-    a pilot project in which the Government will invite tenders to
      supply re- conditioned computers to families. Those on low
      incomes will pay only a small charge. There will also be
      subsidised loans for teachers to buy computers to use at home.

The strategy will be underpinned by the #700 million National Grid
for Learning linking 32,000 schools by 2002. In addition to
Exchequer funding, the New Opportunities Fund (NOF) will provide #200
million for the necessary infrastructure to equip and network
libraries and give IT access to all aspects of learning at community
level; #230 million for teacher training; and further funds for
training librarians.

The Chancellor is also announcing in this Budget:

- a tax relief for employees who are loaned computers by their
employers. This will no longer be treated as a benefit in kind.

-    new encouragement for IT training. From 2000, everyone will be
      eligible to open an Individual Learning Account. ILA holders
      will qualify for an 80% discount on the current cost of key
      courses such as computer literacy, implying charges to the
      individual of #20 or less.

To ensure coherence across these initiatives, the Chancellor has
asked the Secretary of State for Education and Employment and Chief
Secretary to the Treasury, in consultation with the Department for
Culture, Media and Sport, Department of Trade and Industry and the
Department of the Environment, Transport and the Regions to oversee a
coordinating group. This will in particular drive forward the
learning centres initiative, seeking the maximum participation of
local authorities, companies and voluntary bodies, developing
public/private partnerships and allocating funds. The Secretary of
State for Education and Employment, David Blunkett, will be
announcing further details shortly.

Modernising health care

As part of the #430 million health package, the CMF is providing #120
million in 1999-00, which will fund:

-    an urgent programme to modernise and improve Accident and
      Emergency departments in hospitals. For England, today's
      announcement builds on the #30 million programme announced
      recently, and means that all A and E departments that need it
      will benefit by April 2000;

- improved primary care facilities so they are able to deliver
faster and more convenient access for patients.

Safer communities

A #170 million package of investment will tackle crime hotspots. It
will be jointly managed by DETR and the Home Office under the
Government's Crime Reduction Programme.

Scotland, Wales and Northern Ireland

The Chancellor today announced that Scotland, Wales and Northern
Ireland will receive total CMF funding of at least #165 million, #80
million and #50 million, respectively, for the next three years.
This includes their elements of the programmes outlined above. The
Secretaries of State for Scotland, Wales and Northern Ireland will
announce their allocations of their remaining CMF funding, in due
course.

NOTES FOR EDITORS

1. Further details on these projects and other allocations from the
CMF will be announced shortly.

2. The #2.5 billion Capital Modernisation Fund was set up in the
Comprehensive Spending Review to support capital investment to
improve public services. It initially provided #1 billion for
spending in 2000-01 and #1.5 billion in 2001-02. The Government now
believes there is scope for a more rapid start in these key areas and
has brought forward #250 million of the Fund from 2001-02 to
1999-2000: so that the CMF allocation is now #0.25 billion in
1999-00, #1 billion in 2000-01 and #1.25 billion in 2001-02.

3. 30 per cent of primary schools and 90 per cent of secondary
schools are linked to the National Grid for Learning.

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