The chancellor announced a £61 billion increase for improved public services by 2005/6 in the comprehensive spending review on Monday – including £1.5 billion for child care initiatives, writes Clare Jerrom.
Chancellor Gordon Brown promised that every three and four year old who wanted a nursery place would have one by October 2004, Sure Start would be expanded to meet the needs of up to 400,000 children, and an additional 250,000 childcare places would be made available. New children’s centres offering a focal point for children’s services to 300,000 children would be developed by 2005/6.
Praising the work of the voluntary sector, Brown said voluntary organisations were to be given a three-year fund of £125m to draw on for their public service work. The budget for the Children’s Fund will also increase to £200m a year to 2006, and £20m a year for the next three years to community sports clubs
Young and adult unemployed, lone parents and disabled people seeking work will benefit from the nationwide roll-out of the one-stop service Jobcentre Plus scheme by 2006
England’s 88 most deprived areas will benefit from the increase in the Neighbourhood Renewal Fund from £300m this year to £525m a year by 2005/6.
Brown promised £13.5 billion by 2005/6 to the Home Office, to be used to speed up the asylum system, boost police numbers, and help the criminal justice system tackle both crime and the causes of crime.
He also announced the creation of four new inspectorates: a health inspectorate, a social care inspectorate, a reformed criminal justice system inspection regime, and a single housing inspectorate.
But Brown said that failing institutions will be dealt with early and decisively. Failing social services and housing departments face the imposition of new directors and senior managers while local authorities in trouble will be subject to a recovery plan, with the possibility of new managers if that fails. Under-performing prisons also face new management.
The chancellor stressed, however, that high performing public service providers would be given more resources and more authority to innovate.
"But in every case at the same time we will also incentivise and reward success with high performing institutions receiving new resources and greater autonomy – new freedoms and more flexibility," he said.
For more given in resources more is required in results," he added.
Education was the main winner in the comprehensive spending review. Funding will increase from £45 billion in 2002 to £58 billion in 2005/6. This compares to £29 billion in 1997 when Labour came to power.
"Education, education, education," Brown said, adding that the aim would be to raise standards in schools, enhance choice and diversity and tackle poor pupil behaviour in secondary schools.
He added that by September 2004, all young people who stay on in education will have access to an income-related Education Maintenance Allowance, worth up to £1500 a year per person.
But that matches the health and social care spending announced in the Budget in April, with a 7.4 per cent average annual real terms growth in UK NHS spending for five years. To show the government’s commitment to social care, 6 per cent a year real terms growth in resources for personal social services in England over the next three years was announced.
The chancellor said that on Thursday the deputy prime minister will make an announcement on reforms for housing. This will include new homes for social tenants and key workers, including low cost homes in London and the south-east, and plans to tackle homelessness. To pay for this, £5.9 billion a year will be invested by 2005/6.
