Chapter 19

The Chancellor's departments and the Cabinet Office

Government is committed to raising the rate of sustainable growth, and achieving rising prosperity, through creating economic and employment opportunities for all by:

maintaining a stable macroeconomic framework with low inflation;
ensuring that taxpayers understand and comply with their obligations;
introducing the new integrated child credit from 2003, contributing to halving child poverty in the next ten years;
increasing the gains to work, and clearly demonstrating the benefits of work over welfare through the new employment tax credit; and
reducing the level of crime associated with smuggling and drugs.

The Chancellor's departments

19.1 The Chancellor's departments have a key role to play in delivering rising prosperity through creating economic and employment opportunities for all. Building on the stable macroeconomic framework, the Government is taking steps to increase the productivity of the economy, employment opportunity and build a fairer and more inclusive society.

19.2 Successive Budgets have taken radical and wide-ranging steps to reform Britain's labour, capital and product markets and boost competition and enterprise. Over the past three years, the number of people in work has increased by 1 million, helped by measures which the Government has already introduced to help people move from welfare and make work pay, including the Working Families' Tax Credit.

Economic and employment opportunities for all

Box 19.1: Key PSA targets - The Chancellor's departments

HM Treasury

By 2004, raise the trend rate of growth from the current estimate of 2.5 per cent.
Over the economic cycle, maintain (a) public sector net debt below 40 per cent of GDP and (b) the current budget in balance or surplus.

Customs & Excise

Reverse the current trend in tobacco smuggling so that by 2004-05 smuggled cigarettes represent no more than 18 per cent of the market.
Reduce the availability of class A drugs by 25 per cent by 2005, and by 50 per cent by 2008.

Inland Revenue

Deliver year on year reductions in compliance costs that act as a barrier to the establishment and growth of small businesses.

Inland Revenue and Customs & Excise (shared)

Ensure by 2005 that 100 per cent of Customs & Excise and Inland Revenue services are offered electronically, wherever possible through a common government portal, and a take up rate for these services of at least 50 per cent.

Improving compliance and value for money

19.3 Further modernisation of IT systems by the two revenue departments will enable individuals and businesses to understand and comply more readily with their obligations. The introduction of contact centres will allow clients to deal with their tax affairs faster and more conveniently over the telephone or by e-mail.

Preventing smuggling of illegal drugs and tobacco

19.4 Customs and Excise will contribute to ensuring that the availability of class A drugs is reduced by 25 per cent by 2005, and that the upward trend in tobacco smuggling is reversed. Both of these initiatives are integral to the Government's strategy to crack down on crime. Investment in X-ray scanner technology will form part of this strategy.

Improving the quality and integrity of national statistics

19.5 As part of the new framework to enhance the integrity of official statistics, the Office for National Statistics will deliver a step change in the quality and range of economic and social statistics. It includes funding to develop improved statistics at ward level to help inform and improve Government policies for neighbourhood renewal.

Spending plans

19.6 The spending plans for the Chancellor's Departments are set out below. The current year's provision takes account of the potential transfer of the revenue departments' accommodation to the private sector.

Table 19.1: Key figures

£ million
	2000-01	2001-02	2002-03	2003-04
Inland Revenue¹	2271	2461	2646	2664
Customs & Excise¹	906	1045	1125	1147
HM Treasury	246	212	212	217
Office for National Statistics ²	136	186	139	126
National Savings	177	176	157	155
Small Departments ³	4	4	1	1
Total Chancellor's Departments*	3740	4084	4280	4310
of which: Resource Budget	3804	3922	4058	4078
Capital Budget	-64	162	222	232

*Departmental Expenditure Limit

1 The 2000-01 figures for the Inland Revenue and Customs & Excise are reduced by the expected proceeds from disposal of their office estates.
2 Expenditure in 2001-02 includes the cost of the 2001 Census.
3 Small Departments are the Government Actuary's Department, the National Investment and Loans Office and the Registrar of Friendly Societies.

Cabinet Office

19.7 The Cabinet Office will assume responsibility for developing the strategy for information age government. Funding has also been provided for the Cabinet Office's key units, such as the UK Anti-Drugs Coordination Unit, as well as to continue Civil Service reform.

19.8 Provision is also made for the House of Commons, the House of Lords, the Parliamentary Commissioner, the Privy Council, the Central Office of Information, the National Audit Office and the Civil Superannuation Vote.

Security and Intelligence Agencies

19.9 The spending of the Security and Intelligence Agencies (Secret Intelligence Service, Security Service and the Government Communications Headquarters) has been examined as part of the Spending Review. Funding has been provided which will ensure that the Agencies are able to continue their work. In the next three years the figures include provision associated with GCHQ's new accommodation project in Cheltenham.

Box 19.2: Key PSA targets - Cabinet Office

Ensure key public services have set in place strategies and targets for measuring and responding to users' views.
Ensure departments meet the Prime Minister's targets for electronic service delivery by government: 25 per cent capability by 2002 and 100 per cent capability by 2005.

Spending plans

Table 19.2: Key figures

£ million
	2000-01	2001-02	2002-03	2003-04
Cabinet Office	144	155	145	148
Single Intelligence Vote	803	876	886	941
Other bodies**	431	423	423	431
Total*	1378	1454	1454	1519
of which: Resource Budget	1173	1285	1299	1354
Capital Budget	205	169	155	166

*Departmental Expenditure Limit
**These figures cover the House of Commons, the House of Lords, the Parliamentary Commissioner, the Privy Council, the Central Office of Information, the National Audit Office and the Civil Superannuation Vote.

The Chancellor's departments and the Cabinet Office

The Chancellor's departments

Economic and employment opportunities for all

Box 19.1: Key PSA targets - The Chancellor's departments

HM Treasury

Customs & Excise

Inland Revenue

Inland Revenue and Customs & Excise (shared)

Improving compliance and value for money

Preventing smuggling of illegal drugs and tobacco

Improving the quality and integrity of national statistics

Spending plans

Table 19.1: Key figures

*Departmental Expenditure Limit

Cabinet Office

Security and Intelligence Agencies

Box 19.2: Key PSA targets - Cabinet Office

Spending plans

Table 19.2: Key figures

*Departmental Expenditure Limit**These figures cover the House of Commons, the House of Lords, the Parliamentary Commissioner, the Privy Council, the Central Office of Information, the National Audit Office and the Civil Superannuation Vote.

*Departmental Expenditure Limit
**These figures cover the House of Commons, the House of Lords, the Parliamentary Commissioner, the Privy Council, the Central Office of Information, the National Audit Office and the Civil Superannuation Vote.