Labour 'wasted £19bn as public sector efficiency fell'

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They show productivity in public services fell by 3.2 per cent overall in the decade after New Labour swept to power in 1997 - at an estimated cost of £19billion.

While Tony Blair and Gordon Brown were pouring billions into the public sector, taxpayers were getting worse value for money, according to the data from the Office for National Statistics.

While overall productivity in 2006 and 2007 increased - by 0.8 and 0.6 per cent - there were huge declines in public order and safety (16.6 per cent) and children's social care (20.9 per cent) - though this was partly due to a shift towards adoption and fostering away from residential care.

Now, Chancellor Alistair Darling is warning of major cuts in public spending to tackle Britain's debt mountain.

The ONS figures show that in education there was a drop in productivity of 3.2 per cent over the decade to 2007.

Healthcare productivity plummeted 6.1 per cent between 1997 and 2005 but rose in the following two years by 1.8 per cent, leaving an overall fall over 10 years of 4.3 per cent.

"Labour have pumped up public spending but failed to get taxpayers more bang for their buck," said Liberal Democrat Treasury spokesman Matthew Oakeshott. "The education record is a disgrace. The blame lies squarely at Gordon Brown's door as Chancellor."

Mr Brown is to chair a special Cabinet on Friday which will discuss public services reform and how to improve efficiency.

Mr Darling today said the Government's priorities should be health, education, housing and transport as it puts the brakes on spending.