Spending fails to meet target

Spending on health and local authorities last year was £750
million less than promised according to the latest government
figures.

Whitehall’s provisional accounts show the Department of Health
failed to spend £706 million of its £45 billion
target.

The £35 billion local government allocation of the former
Department of the Environment, Transport and the Regions had a
surplus of £53 million.

The GMB union has called for chancellor Gordon Brown to launch
an immediate inquiry into the “scandalous” £7 billion
underspend across government departments.

A Treasury spokesperson said unspent allocations can be carried
forward and used in future years.

Reasons for an underspend include lower than expected demand or
spending on projects being spread over more than one financial
year.