Tony Blair appeared to heed an early warning from the Treasury not to “fritter” away the budget on “piecemeal initiatives”.
A slideshow prepared for the new Labour Prime Minister in October 1997 by Alistair Darling, Chief Secretary to the Treasury and future Chancellor of the Exchequer, urged caution.
The presentation included one slide, entitled “What we must do”, which identified the Government’s fiscal blueprint, according to documents released by the National Archives, Kew.
It said: “Make every million count.
“Hold down spending on non-priorities.
“Don’t fritter £ millions on piecemeal initiatives.
“Make a difference on our real priorities.”
Those priorities, according to then-Health Secretary Frank Field, included modernising the health service.
Minutes from a meeting of the Ministerial Committee on Public Expenditure, ahead of the Comprehensive Spending Review, record Mr Field describing the NHS as “in crisis, giving rise to serious public concern”.
The minutes add: “Staff morale was low, and there was a risk that the service would be overwhelmed by changes in demography, rising public expectations and developments in technology and pharmaceuticals.”
He said money was required for a “new focus on high-quality outcomes”.
Elsewhere, then-Home Secretary Jack Straw floated the idea of more non-custodial prison sentences to combat the soaring jail population.
Mr Blair was elected to power after 18 years of Conservative governments, and committed to working within the initial spending plans inherited from his predecessor John Major and his chancellor Ken Clarke.
