HC Deb 09 March 1971 vol 813 cc220-2
5. Mr. Douglas

asked the Chancellor of the Exchequer if he will make available estimates of the percentage of national income to be taken by public expenditure in the years 1969–70 to 1975 as in Command Paper No. 4578, compared with estimates for 1968–69 to 1973–74 as in Command Paper No. 4234.

Mr. Maurice Macmillan

The outturn for total public expenditure in 1969–70, given at 1970–71 outturn prices in Cmnd. 4578, represents 50.5 per cent. of gross domestic product at factor cost for that year. The corresponding percentages based on the figures for 1968–69 (provisional outturn) and 1969–70 (estimate) in Cmnd. 4234 are 51.2 per cent, and 51.4 per cent, respectively. Figures for later years are not available.

Mr. Douglas

Will the hon. Gentleman concede that the difficulty of making estimates for later years and the high proportion of G.N.P. going to public expenditure in the years he has mentioned are an indication of the lack of growth in the economy? Therefore, how can he have meaningful discussions with the T.U.C. about the course of public expenditure and about controlling wage inflation and price inflation unless he can give meaningful estimates of growth in the economy?

Mr. Macmillan

The discussions between my right hon. Friend and the T.U.C. are not a matter for me to deal with. The changes in percentages are mostly accounted for by shortfall. We have deliberately refrained from presenting our public expenditure plans in relation to target rates of future growth in the economy because of the total failure of that presentation when attempted by the previous Administration.

Mr. Barnett

In view of the criticism from both sides of the House in the recent debate of the Government's failure to publish the revenue details in the White Paper, have the Government reconsidered their decision and can the hon. Gentleman assure the House that they will include revenue figures in future White Papers?

Mr. Macmillan

I have certainly discussed and considered with great care the question of the publication of revenue tables in a White Paper on public expenditure. Everything has led me to believe that the Government are right in their course and that a White Paper on public expenditure is not the place in which to publish future projections of revenue.

Mr. Emery

Will my hon. Friend bear in mind that there will be serious criticism from this side of the House if, in the years ahead, whatever estimates he has published or not published, the percentage of G.N.P. which is going to public expenditure is not considerably reduced from the immensely high figures which have prevailed in the last few years?

Mr. Macmillan

I am grateful to my hon. Friend for bringing this matter back from the realms of figures to the realm of fact. I assure him that the Government are well aware of what he said. The figures I have quoted apply to conditions before the present Government's change of policy has had time to take effect.