Public Spending (Hansard, 11 November 1982)

§ 15. Mr. Marks
asked the Chancellor of the Exchequer if he is satisfied with public spending in 1982–83 by Government Departments, local authorities and other public bodies.

§ Mr. Brittan
The outturn is likely to be very close to that anticipated at the time of the Budget. But we are concerned about the high level of local authority current expenditure and the low level of capital expenditure by local authorities and public corporations.

§ Mr. Marks
The Minister did not refer to Government Departments. Is he aware that the Government's action in asking for increased capital expenditure has destroyed the base on which it could be made and reduced the Government's building departments by about 25 per cent.? Does he realise that that action prevents local authorities from getting on with the job that they are supposed to do?

§ Mr. Brittan
I do not accept that the Government have done anything that prevents local authorities from using to the full the provision in the White Paper for capital expenditure. I very much hope that, within the constraints of what can be done in the limited period, they will seek to respond to the initiatives that have been taken by the Government in that respect.

§ Mr. Eggar
Is my right hon. and learned Friend satisfied with the level of capital spending by nationalised industries?

§ Mr. Brittan
The level of capital spending by nationalised industries has to reflect, in part, market conditions.

§ Mr. Cryer
Are the Minister and the Prime Minister saying that increased capital expenditure by local authorities and public bodies is likely to lead to the creation of more jobs? If that is so, why do not the Government try to reduce the 3½ million people on the dole by doing just that?

§ Mr. Brittan
There has to be a balance between the expenditure that is desirable and necessary and the level of borrowing that can be permitted before inflation starts rising again. That balance was met by the Government in the public expenditure White Paper for this year. All that the Government are seeking to do now is to ensure to the best extent possible that the capital expenditure provisions of that White Paper are met.