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Monday, 15 July, 2002, 16:25 GMT 17:25 UK
2002 Spending Review: At-a-glance
Below are the main points of Chancellor Gordon Brown's 2002 Spending Review.


  • 6% increase in education budget year-on-year, reaching 58bn in 2005/6
  • 2.5% a year increase in real terms spending on all public services, excluding increases in health spending already announced
  • More cash for the home office, defence, culture and sport, as well as education
  • More powers to take over failing schools, prisons and other institutions
  • By 2006, 61bn a year more to improve public services


  • Cash to modernise schools to increase from 2.25bn a year to 4.5bn a year by 2006
  • All secondary schools to receive 50,000 a year extra
  • Extra annual payments of 125,000 for 1,400 secondary schools, tied to new performance targets
  • Typical primary school will receive 10,000 a year more, boosting their annual direct payment to 50,000
  • Scheme to pay students 1,500 a year for staying on at school beyond their GCSEs to be extended from September
  • In total, spending per pupil will rise from 3,500 a year to 4,900 a year by 2005/6, an increase of 50% on 1997 levels

The Home Office

  • Home Office budget up from 10bn to 13.5bn by 2006, an increase of 3.5bn
  • Cash will be used to speed up asylum process and increase police numbers

Culture and sport

  • Budget increase for Department of Culture, Media & Sport from 1.3bn to 1.6bn by 2006
  • Cash used to keep museum entry free and invest in local sports and arts projects
  • New three-year fund of 125m for voluntary organisations

Children and communities

  • New integrated budget for childcare and early years learning, worth 1.5bn by 2006. Full details to be announced
  • Extra 250,000 childcare places
  • By October 2004 every three- and four-year-old will have a nursery place
  • Budget for Children's Fund, which helps vulnerable children, increased to 200m a year
  • More children's centres in local communities
  • Expansion of Sure Start scheme

Pensioners and the disabled

  • Raise Disability Rights Commission budget by 14% by 2006
  • New pension credit to nearly half of all pensioners, 14 a week for single pensioners
  • 6% increase in social services budget to boost services for the elderly

Local authorities and housing

  • Increase in local authorities' budget by 4.2% a year
  • Housing budget to increase to 5.9bn a year by 2006, a 105% increase on 1997 level
  • New social housing and homes for key workers in south-east England and cash to upgrade old properties
  • Increasing the Neighbourhood Renweal Fund to 525m a year

Public service reform

  • Underperforming local authorities and prisons face being taken over
  • Poor performing schools will also be taken over
  • More cash and freedom for high-performing institutions
  • Departments must meet higher standards or face budget cuts
  • New Police Standards and housing watchdogs to be created to boost standards
  • Health and social care inspectorate also to be created


  • 38m more for sustainable energy initiatives
  • Expand Enterprise education to 3,500 secondary schools
  • Expand modern apprenticeships to 300,000 by 2004
  • Office of Fair Trading budget to increase from 34m to 55m
  • Expand work permit scheme for key workers
  • Raise the Small Business Service budget


  • 12% increase in transport budget, from 7.7bn a year to 11.6bn by 2006

Farming and the regions

  • Department of Environment, Food & Rural Affairs budget to go up 2.7% a year, from 2.5bn to 2.9bn, by 2006
  • Cash to be spent on promoting sustainable farming and improving flood defences
  • Major reform of planning to speed up development in high unemployment areas
  • Regional Development Agency (RDA) budgets up from 1.6bn a year to 2bn
  • RDA's role to be strengthened in tourism and transport

Science and higher education

  • Higher Education fund rising to 90m a year
  • 10% increase in funding for science teaching
  • New national centre for excellence in science teaching

International development

  • UK aid budget to increase from 3.3bn last year to 4.9bn by 2006

Foreign office

  • Budget to go up from 1.3bn to 1.5bn by 2006
  • Cash to be spent on increased role for British Council and BBC World Service, whose budget will be 38m a year higher by 2006


  • Defence budget up from 29.3bn to 32.8bn by 2006, biggest increase in 20 years

The government's plans for future spending are published on 15 July

Key stories

At the sharp end



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