New public spending category PDEL is a welcome and could have big impact | Heather Stewart

The Preventative Departmental Expenditure Limit (PDEL) is a new public spending category introduced by Chancellor John Healey in his debut budget. While not as exciting as some other budget additions, PDEL may prove to be a significant and impactful addition to the tax and spend landscape. The primary purpose of PDEL is to provide a dedicated budget for preventive policies, set apart from day-to-day departmental spending and capital investments.

PDEL was instigated by Downing Street and reflects a shift in how the government views public spending. Rather than solely focusing on cutting costs, the government now aims to invest in preventive measures that could save money in the long term. The concept of PDEL is not new, but it is a welcome change in the way the government approaches spending reviews. In the past, governments have consistently rewarded short-term spending on crisis management rather than investing in preventive policies.

Demos, a thinktank, estimates that preventive programmes could have averted £22bn in costs to the government. Furthermore, the Treasury documents accompanying the spending review, as well as the months of negotiations, will center around PDEL, alongside Departmental Day-to-Day Expenditure (RDEL) and Capital Expenditure (CDEL). The introduction of PDEL allows for increased scrutiny and a new conversation about the importance of certain public spending areas.

While it remains uncertain if PDEL will become a major player or merely a supporting character, its introduction marks a significant step towards more long-term thinking in public spending.