Gordon Brown announces £43bn more for public services

Gordon Brown, chancellor of the exchequer, reiterated this week that spending on the NHS would grow to £58.6bn ($88bn) next year, compared with £54.2bn in the current financial year (2000–1).

Presenting details of his three year, comprehensive spending review to the House of Commons on Tuesday, he did not announce any new money for the NHS (above that announced in the Budget), but said that a major new package for care of elderly people would be announced next week.

Echoing the figures in the Budget, he said that that spending on the NHS would increase by £19bn over four years (1999-2000 to 2003-4). The money is expected to increase UK spending on health from 6.9% of gross domestic product to 7.6% taking it closer to the European average of 8%.

In addition to health spending, Mr Brown announced an increase in the budget for the Food Standards Agency of £27m, taking it from £87m in the current year to £111m by 2004. He said that the science budget would also increase—by 5.4% a year in real terms over the next four years.

He said it was time to invest in the United Kingdom's most deprived areas. People on the poorest council estates had unemployment rates four times the national average and mortality rates 30% higher than people in wealthier areas. He announced a new neighbourhood renewal fund and said that 500000 more houses would be modernised or repaired over the next three years.

Declaring that the government was waging a war on child poverty, Mr Brown announced the creation of a national children's fund, which would reach £450m by 2004, to help children at risk. The fund would involve local secular, religious, and voluntary organisations working together to improve conditions of the most vulnerable children.

Mr Brown announced total increases in public spending of £43bn a year, most of which went to education, the police, and transport. He said that the Treasury coffers were healthy because of lower interest payments on the national debt and reduced welfare payments resulting from falling unemployment.

In the Budget, the government announced an increase in NHS funding in the UK of 6.1% average annual real term growth over the four years to 2003-4. This is the longest period of sustained high growth in the history of the NHS.

Brown: time to invest in the UK's poorest areas

(Credit: JONATHAN UTZ/AFP)