Brown: Cut spending plans

Chancellor Gordon Brown is today warning Cabinet colleagues to trim spending demands and speed up reform in the public services.

Even Health Secretary Alan Milburn, expecting a huge boost to NHS funds paid for by tax increases, will have to make a case for receiving the extra cash.

Other ministers will have difficult decisions to make after this summer's three-year comprehensive spending review. The message, being delivered today in a speech to the Social Market Foundation thinktank, brings a fresh twist to the Treasury's traditional pre-Budget tough talking. It follows public lobbying by a series of Cabinet ministers.

Home Secretary David Blunkett promised measures to "reclaim the streets" from criminals, Defence Secretary Geoff Hoon said the Armed Forces were stretched to their limit, and Transport Secretary Stephen Byers put his reputation on the line over securing improvements to rail services.

Mr Brown is expected to say: "Resources must always be matched by reform and the achievement of results. The something-for-nothing days are over in our public services and there can be no blank cheques.

"Before committing the Treasury to additional expenditure we will need to know of Health and other departments whether extra spending is a priority, whether there is clear strategy of reform to deliver value for money, and the track record of increased resources leading to improved results."

Government-aides reportedly warned ministers: "The days when the more noise you made the more money you got are gone." Ministers have been asked to draw up plans for where the axe would fall if their budget was cut. Tony Blair told his Cabinet they must be prepared to defend difficult decisions to cut back services.

While total annual government spending is expected to rise from £212billion this year to £245billion in 2003, most of the increase is expected to be for the health service.