Politics1 min read

A world-first focus on long-term outcomes could transform UK government – or create new spending fights

By · Via The Guardian Politics · Published by Everything Blog

In short

The initiative, known as a preventative departmental expenditure limit (PDEL), marks the first time a government has established a blanket policy to ringfence upfront spending aimed at generating future savings. While officials point to Andy Burnham's rough sleeping prevention efforts, early years initiatives, and public health as prime models, formal Treasury guidelines have not yet been produced. Officials hope this strategy will curb costly challenges in homelessness and adult social care, though financial returns could take decades to materialize.

Key points

  • Ringfencing preventative budgets prevents officials from diverting long-term investment c…: Ringfencing preventative budgets prevents officials from diverting long-term investment capital into day-to-day operational shortfalls.
  • The lack of defined boundaries risks administrative clashes over whether diverse budgets…: The lack of defined boundaries risks administrative clashes over whether diverse budgets like defence qualify for preventative protections.
  • Demonstrating financial returns may take decades, presenting major operational challenges…: Demonstrating financial returns may take decades, presenting major operational challenges despite strong support from public health leaders.

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It merited the briefest of mentions in John Healey’s speech and just one paragraph in the 166-page budget document, but some believe it could revolutionise not just public spending but the very process of government itself: a new focus on long-term outcomes.

The idea in the broad sense is very simple. Any spending deemed to be “preventative” – that is, the initial outlay will be more than made up for by future savings – will from now on be ringfenced, meaning it cannot be raided for more immediate needs.

This might sound uncontroversial, but it follows many years of long-term spending being pillaged to plug day-to-day gaps, particularly so during and after the austerity measures of the 2010 coalition government, which slashed numerous prevention-based services, not least the Sure Start programme for families with young children.

But now, starting from the upcoming spending review, which kicks off next year, projects that can be shown to bring down costs in the future will be protected via a new piece of jargon – a preventative departmental expenditure limit, or PDEL.

“It could…

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