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Gross Domestic Fixed Capital Formation

Volume 955: debated on Tuesday 24 October 1978

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and excluding and including local authority rates.

showing, for each year since 1970 ( a) gross domestic fixed capital formation, ( b) the total value of gross domestic fixed capital formation which receives some form of Government financial support, ( c) the total cost of such support, and ( d) his best estimate of the value of gross domestic fixed capital formation which would not have taken place in the absence of such support.

The following table shows gross domestic fixed capital formation in the public and private sectors for the years 1970 to 1977 and the value of Government capital grams to the private sector in each year. These grants are virtually all for the support of fixed investment. Support for private sector investment is also provided by other means, such as loans and interest relief grant, and by capital allowances against income and corporation tax, but estimates of the proportions of these expenditures or costs which should be regarded as providing financial support for fixed investment are not available. Nor are estimates of the total amount of investment supported, or the extent to which that investment would not otherwise have been made.

FIXED INVESTMENT AND GRANTS TO THE PRIVATE SECTOR
Gross domestic fixed capital formation
Public sectorPrivate sector£ million Capital grants by general Government to the private sector
19704,1105,343744
19714,4306,091857
19724,5067,098722
19735,7348,415793
19747,2299,687832
19758,95711,860955
197610,06713,6021,104
19779,49915,9301,159
£ thousand
Of which to
Total research grants etc.National Institute for Economic and Social ResearchUniversity of CambridgeOther bodies
1973–7485822London Business School
1University of Liverpool
1974–751259034
1975–7615814117
1976–77180151224University College of North Wales
1977–78209177246University of Newcastle
1978–79221195194University of Newcastle