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Government Expenditure

Volume 963: debated on Monday 19 February 1979

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asked the Chancellor of the Exchequer if he will clarify what is meant by the term "satisfactory balance of payments" in paragraph 32 of Cmnd. 7439; and, in particular, whether and on what scale it is assumed that (a) the current account and its components, namely, non-oil trade, oil trade and invisibles, are in deficit or surplus and (b) whether the capital account is assumed to be in deficit or surplus.

, pursuant to his reply [Official Report, 15 February 1979; Vol. 962, c. 637], gave the following information:In making the three illustrative projections for 1977–82 it was assumed that the balance of payments on current account should be in surplus at the end of the period. The projections were therefore constrained to produce current account surpluses in the range £0 billion to £1 billion in 1982, and private expenditure was varied until a balance in that range was achieved.In each case the surpluses on invisibles and oil trade, the latter the result of the increase in North Sea oil production, are partly offset by a deficit on goods other than oil. The projections were not carried through to a detailed construction of the external capital account, but the assumption is that the capital account is in rough balance so that the current account surplus is sufficient for some repayment of official foreign debt.

asked the Chancellor of the Exchequer if he will publish estimates of the public sector deficit consistent with table 7 of Cmnd. No. 7439, in £ billion for 1977–78 and 1978–79 and as a percentage of gross domestic product.

, pursuant to his reply [Official Report, 15 February 1979; Vol. 962, c. 637], gave the following information:The public sector financial deficit consistent with table 7 of Cmnd. 7439 and on the same price basis as that table, is estimated at £6·0 billion in 1977–78 and £6·2 billion in 1978–79. In each year the estimated public sector financial deficit is equivalent to 4 per cent. of gross domestic product at market prices.

asked the Chancellor of the Exchequer, for every £100 spent by the Government on each person resident in England, how much was spent on each person resident in Scotland for each of the years from 1960 to 1978; and if he will publish a table giving the relative figures and percentages for each year for each of the following subjects: the National Health Service, social work, education, arts, sport, housing, rents, local government, rate support grants, planning, water, new towns, the countryside, buses, roads, ferries, airports, passenger subsidies, land tenure, tourism, fire service, courts and administration of the criminal and civil law.

, pursuant to his reply [Official Report, 14 February 1979; Vol. 962, c. 569], gave the following information:The table below gives estimates of identifiable public expenditure per head

in Scotland and England for 1973–74 to 1977–78, consistent with those in the answer to my hon. Friend the Member for Gravesend (Mr. Ovenden) on 17 January 1979—[Vol. 960, c.

781–94]. That answer, which gives a full explanation of the term "identifiable public expenditure", notes that the estimates, which were compiled during the late summer of 1978, use the terms and classifications of the public expenditure White Paper "The Government's Expenditure Plans, 1978–79 to 1981–82", Cmnd. 7049 published in January 1978. Estimates on that basis are not available for England for earlier years; figures for Scotland for the years from 1969–70 will be published shortly in the Scottish abstract of statistics.

Public expenditure, and therefore the figures in the tables, includes spending by central Government and local authorities but transactions between them are excluded to avoid double counting. Thus central Government grants to local authorities, such as the rate support grants, and also loans, are excluded because the expenditure which they help to finance is included as public expenditure by the local authorities. Similarly, since public expenditure includes the capital expenditure of certain public corporations, including new town corporations, grants and loans to those corporations are excluded. The table, however, distinguishes identifiable public expenditure by local authorities and new towns.

IDENTIFIABLE PUBLIC EXPENDITURE PER HEAD IN SCOTLAND AND ENGLAND

Current prices

1973–74

1974–75

1975–76

1976–77

1977–78

Scotland

England

Scotland

England

Scotland

England

Scotland

England

Scotland

England

£££££

£ per head (as% of England

per head

£ per head (as% of England)

per head

£ per head (as% of England)

per head

£ per head (as% of England)

per head

£ per head (as% of England)

per head

Identifiable public expenditure by:
Central government306(126)243402(128)314521(128)408586(130)451654(129)508
Local authorities180(119)152241(112)215310(117)264332(118)282363(123)294
Certain public corporations:
New towns5(327)16(188)311(257)410(199)58(172)5
Other3(33)98(81)1013(118)1113(113)1212(117)10
Total identifiable public expenditure494(122)405657(121)542855(124)687942(126)7501,037(127)817
Of which:
Housing63(148)4392(118)78105(133)78108(123)88111(130)85
of which: Subsidies, rent rebates and allowances24(226)1133(179)1841(174)2346(155)2950(149)33
Health and personal social services74(117)63100(118)85136(121)113153(119)128175(122)143
of which: Health63(119)5384(120)70113(122)93127(120)106146(123)119
Personal social services10(110)914(113)1321(121)1724(121)2026(123)21
Education and libraries, science and arts95(120)79121(118)103157(120)130176(119)147189(121)157
of which: Education83(120)69109(120)91140(122)115157(122)129169(123)137
Arts1(102)11(94)12(110)22(115)22(115)2

Roads and transport29(118)2441(122)3350(129)3955(140)4060(156)39
of which: Motorways and trunk roads5(74)77(102)710(106)911(115)914(179)8
Local transport19(126)1523(114)2031(121)2633(124)2736(130)28
of which: Roads16(139)1118(146)1221(151)1422(150)1422(154)14
Public transport investment

*

(33)21(51)22(67)33(90)33(82)4
Concessionary fares1(192)

*

1(82)12(139)22(140)23(134)2
Passenger transport subsidies to British Rail Subsidies to bus, underground and ferry services1(180)

*

2(66)34(94)42(504)

*

3(493)1
2(43)42(63)3
Central government subsidies3(827)

*

1(171)11(283)

*

1(292)11(274)1
to transport industries of which: new bus grants

*

(237)

*

*

(10)

*

*

(159)

*

1(227)

*

1(136)

*

Civil aviation(—)11(94)13(154)22(193)12(299)1
Other environmental services32(115)2843(131)3363(141)4565(143)4675(158)47
ofwhich: Water services (other than land drainage and flood protection)9(124)712(166)718(187)1016(158)1017(176)9
Town and country plannng4(93)45(134)46(123)56(143)46(130)5
Recreation4(111)43(98)512(192)612(193)612(179)7
Tourism1(88)1

*

(159)

*

*

(253)

*

*

(288)

*

1(339)

*

Law, order and protective services**16(94)1721(100)2129(103)2832(101)3236100)36
of which: Courts, the administration of justice etc1(79)12(134)12(123)23(143)23(148)2
Fine services2(101)23(100)35(109)45(105)55(105)5
The figures are rounded independently to the nearest £1

* Less than £0.5 per head.

Provisional.

** Not all Home Office expenditure on Law, order and protective services is split between England and Wales.