An increase in spending on physical infrastructure projects from the £1.96 billion this year to £2.26 billion each year (on average) between 2000 and 2006. This includes: annual spending on transport projects of £880 million, compared to £646 million in 1999; spending on housing-related projects should reach £820 million a year, including a big increase in spending on social housing, part-funded by the abolition of mortgage interest relief, which costs the exchequer £160 million a year; spending on environmental projects, which rose by over £120 million from its 1998 level to £300 million this year, should remain at this higher level.

Spending on education and training should remain high, but need not rise quickly. It should average £3.5 billion a year over the 2000 to 2006 period compared to £3.3 billion in 1999.

Investment in commercial infrastructure - supporting industry, agriculture, energy and tourism - should drop to £531 million from the current level of £771 million. Spending on industry and services support should fall back to £335 million annually from £453 million.