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The Chancellor said that total public spending would rise from £589 billion in the financial year 2007-08 to £678 billion in 2010-11, an average overall increase of 2.1 per cent per year in real terms.  This includes an extra £2 billion on top of what was announced in the Budget 2007 for capital investment in public services.

He said that  efficiency savings across government would yield at least 3 per cent a year over the period of the spending review, releasing £30 billion by 2010-11 to reinvest in further improvements in key public services.

The government would also publish new performance management framework which defines its top 30 priorities for the coming period.

• Income Tax, National Insurance and Tax Credit rates for 2008-2009

• 2007 Pre-Budget Report

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Health and education

Investment in the NHS would continue, with resources increasing from around £90 billion in 2007-08 to £110 billion by 2010-11, an average real increase of 4 per cent a year.  Alongside this there would be efficiency savings of at least £8.2 billion.

Education spending in England will rise on average by 2.8 per cent a year in real terms for the next three financial years, meaning that UK education spending as a proportion of GDP is projected to increase from 4.7 per cent in 1996-97 to 5.6 per cent in 2010-11.

Other departments

He also announced the following spending increases:

• a 2.25 per cent annual real increase in the Department for Transport’s programme budget
  
• increasing resources for the Home Office by 1.1 per cent a year in real terms to enable it to lead the fight against terrorism, alongside wider steps to roll out neighbourhood policing
  
• protecting the UK’s security by increasing spending on counter-terrorism, intelligence and resilience from £2.5 billion in 2007-08 to £3.5 billion in 2010-11
• increasing the Department for Environment, Food and Rural Affairs’ budget by an average of 1.4 per cent a year in real terms. This includes increasing funding for flood and coastal erosion risk management from £600 million in 2007-08 to £800 million in 2010-11
• increasing the Department for International Development’s budget by 11 per cent per year in real terms up to £7.9 billion in 2010-11.  This puts the UK on track to spend 0.56 per cent of Gross National Income (GNI) on Official Development Assistance by 2010-11, meeting the EU’s collective commitment, and on course to reach 0.7 per cent of GNI by 2013
  
• creating an Environmental Transformation Fund of £1.2 billion to support the demonstration and deployment of new energy and efficiency technologies in the UK and to advance poverty reduction through environmental protection in developing countries
• increasing the MoD budget of 1.5 per cent a year in real terms
  
• increasing public investment in the science base from £5.4 billion in 2007-08 to £6.3 billion by 2010-11
  
• increasing spending by the Department for Innovation, Universities and Skills on higher education and skills from £14.2 billion in 2007-08 to £16.4 billion by 2010-11