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Protecting public services

Public services play a vital role in supporting Britain’s long-term growth and competitiveness.

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 eduation 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 programmes; and
• 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 billion.

The following chart shows where taxpayers’ money is spent:

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