Spending Review
NHS, Schools and a Fairer Society

The parties agree that a full Spending Review should be held, reporting this Autumn, following a fully consultative process involving all tiers of government and the private sector.

The parties agree that funding for the NHS should increase in real terms in each year of the Parliament, while recognising the impact this decision would have on other departments. The target of spending 0.7% of GNI on overseas aid will also remain in place.

We will fund a significant premium for disadvantaged pupils from outside the schools budget by reductions in spending elsewhere.

The parties commit to holding a full Strategic Security and Defence Review alongside the Spending Review with strong involvement of the Treasury.

The Government will be committed to the maintenance of Britain’s nuclear deterrent, and have agreed that the renewal of Trident should be scrutinised to ensure value for money. Liberal Democrats will continue to make the case for alternatives. We will immediately play a strong role in the Nuclear Non-Proliferation Treaty Review Conference, and press for continued progress on multilateral disarmament.

The parties commit to establishing an independent commission to review the long term affordability of public sector pensions, while protecting accrued rights.

We will restore the earnings link for the basic state pension from April 2011 with a “triple guarantee” that pensions are raised by the higher of earnings, prices or 2.5%, as proposed by the Liberal Democrats.


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Conservative - Liberal Democrat Coalition Agreement »Conservative - Liberal Democrat Coalition Agreement
Spending Review
Hold a full Strategic Security and Defence Review »Hold a full Strategic Security and Defence Review
Target of spending 0.7% of GNI on overseas aid will remain »Target of spending 0.7% of GNI on overseas aid will remain
Fund a significant premium for disadvantaged pupils »Fund a significant premium for disadvantaged pupils
Independent review of the affordability of public sector pensions »Independent review of the affordability of public sector pensions
Restore the earnings link for basic state pension from April 2011 »Restore the earnings link for basic state pension from April 2011
NHS funding should increase in real terms in each year of Parliament »NHS funding should increase in real terms in each year of Parliament
Full Spending Review should be held, reporting this Autumn »Full Spending Review should be held, reporting this Autumn
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