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SR2002/CX

15 July 2002

The Chancellor's departments: new spending plans

Investment to continue the modernisation of the UK tax system and strengthen electronic service delivery are among the commitments contained in today's spending plans for the Chancellor's departments.

The 2002 Spending Review settlement provides resources to:

  • improve the efficiency of service delivery through greater use of electronic applications, including electronic filing of payroll data, reinforced by additional support for small business;
  • combat VAT and oils fraud to improve the fairness of the tax system and protect government revenues;
  • provide significant investment in a major modernisation programme for the Office of National Statistics, which will improve both the efficiency of the production of statistics, and their quality.

Paymaster General, Dawn Primarolo said:

"The Inland Revenue plays a major role in the provision of key frontline services to citizens and businesses. The resources announced today will maintain progress in improving the services delivered by the department, as well as reducing compliance costs in the tax system, protecting government revenues, and enhancing fairness."

Financial Secretary, Ruth Kelly said:

"The investment in the Office of National Statistics should help deliver a step change in the way in official statistics are produced, improving both the efficiency of the systems, as well as ensuring the highest quality of National Statistics. This is a very welcome investment in developing a robust and modern IT infrastructure."

Economic Secretary, John Healey said:

"Customs & Excise has an increasingly important role in law enforcement and a responsibility to improve the collection of tax revenue. This additional investment will enable Customs to make progress in tackling fraud in the VAT system, and to implement the new registration scheme for oils. In promoting a fair and efficient tax system it is essential that tough action is taken to ensure that the revenue systems are not abused through fraudulent evasion. Customs will also continue to improve the way it deals with UK business, including developing further its E-business services."

Notes for editors

1. Key figures for the Chancellor's Departments and various other bodies are:

£ million 2002-03 2003-04 2004-05 2005-06
Chancellor's Departments
Resource Budget 4,309 4,4684,608 4,778
Capital Budget 228 238 300 303
Total Departmental Expenditure Limit14,264 4,421 4,619 4,789
Of which in DEL
Inland Revenue 2,704 2,749 2,836 2,913
HM Customs and Excise 1,095 1,145 1,212 1,287
Central Treasury 103 105 110 115
Treasury "other" 65 114 122 123
Office for National Statistics 139 132 159 174
National Savings 157 172 171 168
Near-cash spending in Chancellor's departments DEL2 4,239 4,324 4,513 4,680
1 Full resource budgeting basis, net of depreciation
2 Consistent with previous control basis

2. The Chancellors Departments cover Inland Revenue, HM Customs and Excise, HM Treasury, Government Actuary's Department, Office for National Statistics, and National Savings.

3. The Government conducted a comprehensive review of public services - the Comprehensive Spending Review - in 1998. The 2000 Spending Review built on this by setting targets and allocating resources for the three years to 2003-04. The 2002 Spending Review revises these plans for 2003-04 and outlines new plans for 2004-05 and 2005-06.

4. For further details please contact the Press Offices of the Treasury: 020 7270 5238; HM Customs and Excise: 020 7865 5715; the Inland Revenue: 020 7438 7327; or the Office for National Statistics: 020 7533 5702.

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