DEPARTMENTAL SPENDING LIMITS
52. The Government has set out clearly the benefits
that setting three year spending limits brings — for example
to provide a solid base for planning and to provide greater flexibility
between years.[71]
We would not seek to challenge these advantages but have some
concerns about the reverse side of the coin — the lack of
flexibility to take on new work, for example arising from policy
and strategy reviews which are still underway, including the Sustainable
Development Strategy and the Renewable Energy policy.
53. A reserve has been set aside within the expenditure
planning totals — of some £5.5 billion over the
three years 1999 - 2002.[72]
But the Treasury told us categorically that departments will have
to fund new programmes from within their allocations.[73]
The Chief Secretary told us that there would be no extra money
allocated to individual departments during the three years.[74]
Departments would have to accommodate new pressures through reordering
their priorities within their financial envelope.[75]
He did not give us any indication that resources had been set
aside for forthcoming developments such as the Sustainable Development
Strategy.
54. We are very concerned about the constraint
the fixed three year spending limits place on key policies which
are due to be finalised within the next year or so. We ask the
Government again to tell us what provision it has made to enable
forthcoming policies to be taken forward, in particular the Sustainable
Development Strategy and the Renewable Energy Policy.
55. We understand that the Government's intention
is to roll forward the three year spending limits in 2000 to tie
in with the timetable for the introduction of Resource Accounting
and Budgeting, and that this results in the third year of the
current Comprehensive Spending Review, 2001 - 02, also being the
first year of the second Comprehensive Spending Review.[76]
We therefore ask particularly whether there will be scope to
address the need for any new spending on the Sustainable Development
Strategy and Renewable Energy Policy for the year 2001 - 02.
71 Stability and Investment for the long-term. Economic
and Fiscal Strategy Report 1998 Cm 3978, p26 Back
72
Modern Public Services for Britain, Op. Cit. p109 Back
73
Ev p4 Back
74
Q63 Back
75
Q78 Back
76
Economic and Fiscal Strategy Report, Op.Cit.p26 Back
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