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Budget points

* local authorities can increase spending on schools by Pounds 591 million - up 3.4 % on 1996-97

* teacher recruitment targets to be drastically reduced over the next three years

* further education to get an additional Pounds 80 million over the next two years

* extra cash for grant-maintained schools to create sixth forms and nurseries

* higher education to get Pounds 200 million additional spending over two years

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