The coalition Government has committed to increasing the Department for International Development's total aid spending from £7.8 billion in 2010-11 to £11.5 billion in 2014-15. The Department aims to improve and expand state primary education, focusing on sub-Saharan Africa and Asia. It works largely by influencing and financing developing country governments to pursue Millennium Development Goals. The Committee supports these aims, but expresses concerns about its ability to assess the value for money of its spending. Fourteen of the 22 countries the Department supports are on track to meet Millennium Development Goals for primary enrolment by 2015. The Committee also expresses concern that the Department cannot adequately attribute impacts to its spending and its influence. Even for its largest programmes, such as India, it typically contributes a low proportion of the countries' education spend. For the Committee, the Department needs to place value for money as the primary focus when allocating resources or assessing the performance of its education programmes. It needs to focus on how many children attend and complete primary education, along with the literacy and numeracy they achieve.
In 2009-10, public expenditure rose to 48 per cent of GDP whilst income fell to 37 per cent, resulting in the largest deficit in Britain's peacetime history. This Spending Review sets out how the Coalition Government will carry out its deficit reduction plan. Particular focus has been given to reducing welfare costs and wasteful spending. This has enabled the Coalition Government to prioritise the NHS, schools, early years' provision and the capital investments designed to support long term economic growth. Departmental budgets other than health and overseas aid will be cut by an average of 19 per cent over four years. Key areas of Annually Managed Expenditure (AME) in addition to Departmental Expenditure Limits (DELs) for each government department and for the devolved administrations are covered. The Review sets out departmental spending plans for the four years until 2014-15 and further savings and reforms to welfare, environmental levies and public service pensions. The Review protects high value transport maintenance and investment, maintains the science budget, invests in apprenticeships and the low carbon economy and allows universities to increase fees from the 2012-13 academic year. Fundamental reforms will simplify the welfare system and make net savings of �7 billion a year. Social housing will be reformed and social care will receive an additional �2 billion by 2014-15. Public service reform underpins the Review: decentralisation of power; cutting burdens and regulations on front-line staff; improving transparency, efficiency and accountability of local services. Local government will have greater freedom but must work within reduced allocations. Public sector pensions will be reformed in line with Lord Hutton's recommendations. Central government administration costs will be cut by 34 per cent by 2014-15. Government departments will produce business plans later in 2010 detailing reform plans and priorities.
The test of whether the UK should continue to give aid to India is whether that aid makes a distinctive contribution to poverty reduction. The Government of India has primary responsibility for this and has already reduced poverty levels from 60 percent in 1981 to 42 percent in 2005. But whilst the economy is growing there are large pockets of poverty that still remain. The DFID plans to change some of its programme, focusing primarily on three of the poorest states, Bihar, Madhya Pradesh and Orissa, also changing the sectors it prioritises and putting 50 percent of its budget through the private sector by 2015.The Committee supports the focus on the poorest states but provided it is supported by the Government of India. They recommend supporting in particular sanitation, malnutrition, maternal and child health and social exclusion. The Committee supports the Government's aim to forge a new enhanced partnership with India with its mutual benefits from cooperation in trade and investment but the DFID must ensure UK Government policies help protect the poorest and reduce inequalities. The Committee assuming that over the next four years as India continues to grow at current rates it will have increased its capacity to tackle poverty and meet the millennium development goals. DFID should continue to provide technical assistance where requested but the funding mechanism should change by 2015.
In this report the Education Committee stresses that the Department for Education must maintain sufficient focus on the critical children's policy agenda to ensure this is given adequate resources and receives enough attention from senior officials and ministers. Children's policy must retain sufficient status alongside schools and colleges, which appear to occupy the majority of Ministerial and officials' time. The Committee's report - which considers evidence from current and former DfE Board members, and independent experts - commends several aspects of the DfE's governance and leadership, including the appointment of four skilled and experienced new non-executives. The Committee recommends, however, that the Board be subject to increased external scrutiny. The DfE should also consider appointing a non-executive Board member with expertise in children's policy issues, and must do more improve staff morale. MPs also suggest a number of improvements to the DfE's current restructuring plans. Central amongst these is a recommendation for the Department to evaluate the impact of structural change on the front line and on customer service.
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