asked the Chancellor of the Exchequer what estimated effect the excess of local authorities' current expenditure over the Government's public expenditure plans in the years since 1979–80 has had on (a) the public sector borrowing requirement and (b) the money supply (M3) compared with the position if authorities had achieved the planned expenditure totals.
The effects of changes in the level of local authorities current expenditure on the public sector borrowing requirement and the money supply depend on a wide variety of factors. To estimate the size of these effects would require the use of a complex economic model such as the Treasury model and the specification of a number of assumptions. I refer the hon. Gentleman to the answer I gave the hon. Member for Glasgow, Maryhill (Mr. Craigen) on 12 November.—[Vol. 12, c. 129–30.]