A world-first focus v New spending fights
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…
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 end up being quite a major change in how the government runs spending reviews, and the entire spending framework,” said Stuart Hoddinott, at the Institute for Government thinktank, which had called for such a system to be implemented. Officials in the Treasury agree, with one calling it an “important reform”.
That is, however, about as straightforward as it gets. The budget document uses Andy Burnham’s new spending to prevent rough sleeping as an example of the sort of thing that would qualify. A few other areas would seem likely: for example, public health programmes to prevent future illness, and Sure Start-type early years schemes.
But beyond that, no one really knows what might or might not qualify for PDEL status. Departments say they are waiting for Treasury guidance, which has not yet been drawn up. “A lot depends on the definition,” Hoddinott said. “While it sounds simple, it becomes quite difficult when you think about how it will work in practice, as you could make any argument that almost all types of spending are preventative.”
Source: https://akhaart.blogspot.com/2026/10/a-world-first-focus-v-new-spending.html
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