HC Deb 21 March 1985 vol 75 cc973-4
10. Mr. Maude

asked the Chancellor of the Exchequer what has been the real percentage increase in total public expenditure in each year from 1979; and what is the anticipated real level of public expenditure for the forthcoming five years.

Mr. Peter Rees

In real terms the year-on-year percentage increases in the public expenditure planning total since 1979–80 have been 1.5, 2.7, 1.6, 1.6 and 3.2. This last figure, which relates to the year now ending, reflects coal strike costs, without which it would have been 1.2 per cent.

Mr. Maude

Is my right hon. and learned Friend aware that there is widespread concern that the planning totals have consistently been exceeded, that those totals were too high to begin with, and that it is essential to have some reduction in real terms if we are to have real tax cuts in future?

Mr. Rees

I understand my hon. Friend's concern. Provided that we contain public expenditure within the planning totals, and on the basis that there will be growth in the economy, I hope that my right hon. Friend will have increased scope for making the tax cuts that my hon. Friends all want.

Mr. Gordon Wilson

In view of the very small increases in public expenditure to which the Chief Secretary has referred, is he aware that in Scotland this year rates will rise by about 20 per cent. because of a drop in rate support grant authorised by his Department and also because of revaluation? If he is approached by the Secretary of State for Scotland for more money to ease the problems of domestic and commercial ratepayers, will he make more money available for that purpose?

Mr. Rees

My right hon. Friend the Secretary of State for Scotland has made his position clear on that point. The hon. Gentleman is right to emphasise the fact that the increases are at least partly due to the domestic revaluation.

Mr. Dorrell

In his concern to restrict the future growth of public expenditure, will my right hon. and learned Friend remember that important services such as health and education are, for the vast majority of the electors, provided exclusively out of the public sector, and that therefore it would be quite wrong artificially to hold down the level of those services because they happen to fall in the public, rather than the private, sector?

Mr. Rees

I do not entirely accept my hon. Friend's analysis. He and the whole House will realise that there have been real increases in both programmes since we came to office.