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2007 Pre-Budget Report and Comprehensive Spending Review

9 October 2007
CAB/083/07

A strong and effective centre for government

Over the 2007 CSR period, the Cabinet Office will continue to lead efforts to build Government services around the needs of citizens and to tackle the drivers of social exclusion experienced by adults in the UK.

As announced at Budget 2006, the Cabinet Office will be given access to a £12m Modernisation Fund to enable it to take forward ambitious value for money and service transformation programmes generating annual net cash-releasing savings of over £35m by 2010-11. This allows the department to deliver key priorities within budgets that reduce in real terms by 3 per cent each year from 2008 to 2011 and build on efficiencies already made over the Spending Review 2004 period.

The Chancellor today confirmed, following progress on the review into the future role of the third sector, £80 million would be allocated to the Office of the Third Sector to help set-up and run a programme for micro-grants to help projects in local communities and that the successful Futurebuilders programme would be continue to be funded at the level of £65 million over the CSR period.

Through the Social Exclusion Task Force and through a new Public Service Agreement, the Cabinet Office will continue to lead work across government to improve the outcomes for the most excluded adults in society and will also continue to explore how public services could better the needs of the most vulnerable groups.

The Cabinet Office will also oversee the implementation across government of recommendations from Sir David Varney's report Service Transformation: better services for citizens and businesses, a better deal for the taxpayer in the context of the Service Transformation Agreement published today.

Ed Miliband, Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster, today said:

“This CSR makes a priority of the issues of social exclusion and the third sector. Employment is up and homelessness is down – but no one should be left out, so the CSR announces a new drive to help provide a job and a home for people with the toughest problems. The PSA lays the groundwork: we'll be encouraging local authorities to make this a priority, and supporting them to make it a success. Twelve out of thirty Public Service Agreements are focused on reducing poverty and disadvantage – an indication of how seriously this government takes the task of creating a fairer and more equal society.

The third sector is also big focus of the CSR. In July we published our Review, supporting the small groups that build communities and the dedicated organisations that transform public services. Today, we are putting the proposals into effect - including £117 million for youth volunteering and £80 million in small grants. The review follows the biggest ever consultation with third sector – so it's a direct response to what it wants. This CSR enables the Office to ensure that the third sector is fully reflected in the delivery plans of the key departments.”

Notes to editors

The Office of the Third Sector (OTS) was created in May 2006 when the Active Communities Directorate in the Home Office, and the Social Enterprise Unit, in the Department for Trade and Industry (DTI), amalgamated. The decision to place the OTS at the centre of government in the Cabinet Office was taken in recognition of the increasingly important role the third sector plays in both society and the economy.

The Better Regulation Executive has now moved to the new Department of Business Enterprise and Regulatory Reform (BERR).
CO has achieved over £20m annual efficiency savings to date, and is on track to meet its annual efficiency target of £25m set at Spending Review 2004 (SR04).