Abstract

The foundations of the government's second term were formally laid in July 2002 with the completion of the Treasury's Spending Review, Opportunity and Security for All. This sets out departments' spending limits and performance targets for the next four years. Given the likely determination of the Treasury in general and of the current Chancellor in particular not to countenance any revisions to it, the Spending Review is likely to set the basic parameters of public policy up to the next general election. This article reviews some of the key provisions of the Spending Review as they relate to the overall level of public expenditure and to expenditure on and performance targets for health, education and transport.

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