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Budget 2006 Summary
A strong and strengthening economy:
Investing in Britain's future
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High quality public services

Bar chart - Health and education spendingThe Government is committed to providing new investment in Britain's public services. Spending on public services will be over £60 billion 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.

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

  • an additional £585 million to increase direct payments to schools in England;

  • further funding to support the most talented British athletes to prepare for the 2012 Olympics;

  • a further £100 million to bring forward recruitment of Police Community Support Officers for every neighbourhood; and

  • that to meet the UK's commitments in Iraq and elsewhere in the fight against terrorism, £800 million will be set aside from within existing public spending plans.

The Budget also sets out plans for the Government's second Comprehensive Spending Review, reporting in 2007. This will include a national debate on the challenges and priorities for the UK's public services over the coming decade.

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