HC Deb 04 March 1969 vol 779 cc202-3
20. Mr. Frank Allaun

asked the Chancellor of the Exchequer what proportion of the gross national product goes on the current official defence estimate; what is the proportion when other defence expenditure is included; and how the latter figure compares with that of four years ago.

Mr. Diamond

The Defence budget was equivalent to 6.5 per cent. of the gross national product in 1965–66 and it is expected that in 1969–70 it will be under 6 per cent. Total defence expenditure, including "other military defence", was equivalent to 6.7 per cent. of the gross national product in 1965–66 and it is expected that in 1969–70 it will be under 6¼ per cent.

Mr. Allaun

Is my right hon. Friend aware that Britain's proportion exceeds that of every other country in Western Europe, barring Portugal? If we came down to the average level, would there not be a vast sum available annually for housing, health and other purposes?

Mr. Diamond

I must look up the figures.

Mr. David Howell

When the Defence Estimate next year is deducted from the total public expenditure growth forecast of 1 per cent., what percentage growth in the Civil Estimates remains?

Mr. Diamond

I should not like to chance that offhand, but it must be a tiny difference from 1 per cent.

Mr. William Hamilton

Speaking as a Treasury Minister, would my right hon. Friend like to see defence expenditure cut further?

Mr. Diamond

I would refer my hon. Friend to my right hon. Friend the Secretary of State for Defence.

Mr. Powell

What rate of growth in the gross national product next year compared with this year does the right hon. Gentleman's figures assume?

Mr. Diamond

I have made a rough calculation, because I am unable to make a precise one. That is why I have given the figures approximately.