Website of the UK government

Improving public services

Pre-Budget Report 2009 (PBR 09) announced that:

• an additional 0.5 per cent increase in employee, employer and self-employed National Insurance will allow public sector current expenditure to grow by an average of 0.8 per cent in real terms from 2011-12 to 2014-15 - those on an income below £20,000 will not pay extra National Insurance
• Public Sector Net Investment will move to 1.25 per cent of GDP by 2013-14 and remain at that level in 2014-15
• between 2011-12 and 2013-14, NHS frontline spending will rise in line with inflation - spending on frontline schools will rise by 0.7 per cent a year in real terms, and spending on 16 to 19-year-olds' participation will rise in real terms by 0.9 per cent per year

PBR 09 also confirmed:

• the £12bn of savings a year across the public sector by 2013-14 announced in the Smarter Government White Paper
• a further £5 billion of savings by 2012-13 from streamlining public services and stopping lower priority spending
• a 1 per cent cap on public sector pay in 2011-12 and 2012-13

Savings and value for money

These savings build on action already being taken by the government to ensure value for taxpayers' money. Budget 2009 announced that the government's value for money target would increase from £30 billion to £35 billion by 2010-11.