Pre-Budget Report 2005 Summary Leaflet

			Pre-Budget Report 2005 Summary Britain meeting the global challenge: Enterprise, fairness and responsibility


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The Government is committed to providing new investment in Britain's public services. Plans for spending over the next three years were announced in the Spending Review in July 2004. Spending on public services will be £63 billion a year higher by 2007-08 compared with 2004-05. Around 75 per cent of this increase will be spent on the Government's priorities of education, health, social services, transport, housing and the fight against crime.

Spending on health and education

Graph - Spending on health and education

The Government is determined to secure value for money for the taxpayer and has set out plans to achieve efficiency savings of over £21 billion by 2007-08, including through a reduction of more than 80,000 civil service administrative posts. This will release resources for front-line services. The Pre-Budget Report:

allocates extra financial support for local government to help deliver public service improvements and ease council tax pressures;
provides an additional £580 million for the UK's international commitments including in Iraq, and additional resources for counter-terrorism; and
sets out further details of the 2007 Comprehensive Spending Review – a fundamental review of Government priorities and spending to identify the investment needed to ensure Britain is equipped to meet the challenges of the decade ahead.