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

The policy was mentioned briefly in Chancellor John Healey’s speech and appears in just one paragraph of the 166-page budget document.

It introduces a preventative departmental expenditure limit (PDEL), a new mechanism to ringfence spending deemed to have long-term benefits.

Projects that prevent future costs, such as public health programmes or early years schemes, would be shielded from immediate budget raids.

New spending protection

The new PDEL system is designed to end the practice of departments plundering long-term budgets to plug short-term gaps.

This approach follows years where preventative services were cut, notably during the austerity measures of the 2010 coalition government.

Officials at the Treasury have described the reform as "important" and agree it could transform the spending framework.

Defining the scope

The policy’s success hinges on the definition of what qualifies for PDEL protection.

Departments are currently waiting for Treasury guidance, which has not yet been drawn up.

There is a risk that the definition could be so broad that almost all spending could be argued to be preventative.

One official noted that the Ministry of Defence could theoretically argue all its spending is preventive due to the costs of war.

Symbolic shift

The move is being billed as a symbolic attempt to deal with neglected, long-term issues like rough sleeping and adult social care.

While other governments protect specific preventative budgets, this is believed to be the first time a country has introduced such a blanket policy.

Public health leaders have cautiously welcomed the change, though they warn it will require a new mindset to work effectively.