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Child Benefit

Volume 979: debated on Thursday 21 February 1980

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asked the Prime Minister whether it remains the policy of Her Majesty's Government to regard increases in child benefit as a reduction in taxation.

The Government's view is that as child benefit is a cash transfer from the public to the private sector it is appropriate to treat it as public expenditure in the national accounts. Any increase in child benefit adds directly to the public sector borrowing requirement, irrespective of the method of accounting.