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Spending Review
To raise the rate of sustainable growth, and achieve rising prosperity, through creating economic and employment opportunities for all.
1. By 2004, to raise the trend rate of growth from the current estimate of 2.5%.
Objective I: maintaining a stable macroeconomic framework with low inflation.
2. RPIX inflation to be kept at 2.5% as specified in the Bank of England's remit.
Objective II: maintaining sound public finances in accordance with the Code for Fiscal Stability.
3. Over the economic cycle, maintain:
Objective III: improving the quality and cost effectiveness of public services.
4. Achieve an improvement in value for money in public services year by year.
Objective IV: increasing the productivity of the economy.
5. Improve UK competitiveness by narrowing the productivity gap with US, France, Germany, and Japan over the economic cycle. Joint target with DTI
Objective V: expanding economic and employment opportunities for all.
6. Increase employment over the economic cycle. Target contributes to Welfare to Work PSA.
Objective VI: promoting a fair and efficient tax and benefit system with incentives to work, save and invest.
7. Make substantial progress towards eradicating child poverty by reducing the number of children in poverty by at least a quarter by 2004. Joint target with DSS
Objective VII: achieving a high standard of regularity, propriety and accountability in public finance.
Objective VIII: securing an innovative, fair dealing, competitive and efficient market in financial services, while striking the right balance with regulation in the public interest.
Objective IX: promoting UK economic prospects by pursuing increased productivity and efficiency in the EU, international financial stability and increased global prosperity, including especially protecting the most vulnerable.
8. Increase the number of countries participating in the global economy on the basis of a system of internationally agreed and monitored codes and standards.
9. Relief of unsustainable debt by 2004 for all heavily-indebted poor countries (HIPC) committed to poverty reduction, building on the internationally agreed target that three quarters of eligible HIPCs reach decision point by the end of 2000. Joint target with DFID
10. By 2002-03, deliver £1 billion of savings in Government procurement through the Office of Government Commerce.
The Chancellor of the Exchequer is responsible for the delivery of this PSA.
Target 6 contributes to the Welfare to Work PSA (Chapter 21) and is supported by further targets in the DfEE and DSS PSAs. The Chancellor of the Exchequer is, with the Secretary of State for Education and Employment and the Secretary of State for Social Security jointly responsible for its delivery.
