This was between 1996 and 1997. This represented roughly a 2 percent increase of the national income in the gross public spending (Hills & Stewart 2009). This is equivalent to £ 28 billion in the 2007 terms. For the first two years in office, the labor government maintained the conservative spending plan. This was in accordance to their manifesto promise from 1997 to 1999. During that period, there was s robust economic performance and the public spending was seen to decline with regard to national income. The labor government based its spending plans on the comprehensive spending review prepared for the year 1998.
This was buoyed by the spending reviews from 2000 to 2004. This was later affected by the economy-wide inflation which was also referred to as real terms. There was significant departmental under spending. As a result the economic performance was resilient between 1999 and 2000. The 2007 march budget increased the education spending to 77 billion pounds (Hills & Stewart 2009). This was equated to 2 percent annual average in real terms. The increment was seen to be slower than the education spending.
In the overall, it was still a cut. However, this increment was expected to grow from 1999 to 2008. Over the same period of time, the average increment was 5.5 percent annually in real terms (Floud & Johnson 2004). The plans of education spending led to a spending fall in the national income (Giudice & Kuenzel 2012). The labor government manifesto had committed to increase education spending in the 2005 election. During the period the labor government remained in power, the spending increment in education sector was supposed to be maintained.
However, this had an impact in the ability of the British government to deliver on other aspects of education in the United Kingdom (Corsetti & Muller 2009). The 2006 budget announced that the government intended to increase funding the private education sector. The United Kingdom government set to release over 7000 pounds per student in private schools between 2005 and 2006.The government of United Kingdom was said to be undergoing increasing fiscal deficit crisis. In the year 2008, the British government had an extremely terrible credit situation.
This caused the economy of the United Kingdom to remain stagnant. The coalition government had to lay down a policy to
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