Prison budgets are allocated in March each year and are currently largely based on historic spend, subject to adjustment for any required efficiency savings and increases to cover inflationary factors. The indicative budget for 2008-09 includes the effect of the reduction in the prison core day and the impact of the transfer of hospital bedwatches and escorts funding to the Department of Health. The budget will be further increased to include the effects of the 2008-09 pay award and other inflationary factors.
The budget for 2007-08 is £21,887,000 excluding healthcare and education which are directly funded. The indicative budget for 2008-09 is £20,589,000.