215/98
21 December 1998
2 1/2 BILLION POUNDS FUND LAUNCHED TO SUPPORT THE REFORM AND MODERNISATION OF PUBLIC SERVICES
A new 2 1/2 billion Pounds fund to support innovative investment projects which modernise and reform public services was launched today by the Chief Secretary, Stephen Byers.
The fund, to be called the Capital Modernisation Fund, will be allocated to departments on a competitive basis. It will be in addition to the capital funds already allocated to individual departments.
As part of the Public Service Agreements published last Thursday, each department has to draw up its own Departmental Investment Strategy setting out how capital budgets could be used to modernise and reform public services and to assist in achieving a department's performance targets.
Launching the Capital Modernisation Fund Stephen Byers said:
"The Capital Modernisation Fund will be used to support genuinely new and innovative projects which will improve the delivery of public services and the management of assets.
Alongside the recently published public service agreements this fund will play a key part in our agenda to reform and modernise our public services.
The competitive bidding process itself is a new approach for government departments. We are confident that it will lead to high quality projects being put forward.
Because this will be extra money for individual departments it means that additional funds could be allocated to schools and hospitals if the proposals put forward raise standards and improve the quality of provision."
1 billion Pounds will be available in 2000-01 and a further 1 1/2 billion Pounds in 2001-02. A second competition will be held at the end of 1999.
NOTES TO EDITORS
1. The Capital Modernisation Fund (CMF) will be managed by the Treasury.
2. Media copies of the bidding guidance are available from the Treasury Press Office on 0207 270 5238.
3. Non-media copies of the guidance are available from the Treasury Public Enquiry Unit on 0207 270 4558.
4. Separately, HM Treasury has today published a paper "Fiscal Policy: A New Framework for Public Investment".