§ 26. Mr. Wingfield Digbyasked the Chancellor of the Exchequer what percentage of the gross national product he estimates will be taken by central and local government spending, including national and health insurance contributions and interest on loans to local authorities and public corporations, in the coming year; and what was the figure for 1963.
§ Mr. DiamondTotal expenditure by central government and local authorities 1025 —as defined in Table 47 of the 1967 National Income and Expenditure Blue Book—amounted to 40.6 per cent. of the size. of gross national product in 1963. This includes the outgoings of the National Insurance Funds but does not include interest on loans to local authorities or to public corporations. An equivalent figure for 1968–69 cannot be given at this stage.
As my right hon. Friend the former Chancellor of the Exchequer explained to the hon. Member last July, this relationship does not provide a particularly useful measure of the share of national output taken by the public sector or its constituent parts.—[Vol. 750, c. 201.]
§ Mr. DigbyBut is it not a fact that there is nothing for trade in this increasing Government share, and that it is retarding our export drive?
§ Mr. DiamondNo, Sir. I would not accept that view for a moment.