WA35

Spending review: Where the money will go

National security, housing and health would all appear to benefit from the spending plans set out by Chancellor Gordon Brown on Monday 12 July.

Overall departmental spending is to rise by £61bn to £340bn in 2007/8, with extra funds largely provided by the widespread civil service job cuts, plus the sale of £30bn worth of government assets by 2010.

Spending review highlights:

National security

Overall spending on national security is to more than double from £950m to £2.1bn by 2007/8, and 1,000 extra intelligence officials will be recruited.

The total defence budget will rise by £3.7bn to £33.4bn by 2007/8.

Housing

A 50% rise in social housing by 2008 is promised, plus an extra £525m-a-year for the neighbourhood renewal fund for urban regeneration.

Health

Health spending will rise by 7.1% over the next three years. Some 160,000 more elderly people will be able to install care alarm systems in their homes.

Transport

The transport budget will be increased from £10.4 billion this year to £12.8 billion in 2008.

Science

There will be an extra £1.1 billion available for science teaching, graduate scientist salaries and science link-ups with business.

Education

The education budget will increase from £63 billion to £77 billion. £100m from capital funds will go towards building new children's centres.

Full details of the review can be found on the Treasury website: http://www.hm-treasury.gov.uk/spending_review/spend_sr04/spend_sr04_index.cfm

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