HC Deb 06 December 1990 vol 182 cc436-7
3. Mr. Steinberg

To ask the Chancellor of the Exchequer which Departments are planned to have less money in real terms in 1993–94 than their planned expenditure for 1991–92

Mr. Mellor

I refer the hon. Gentleman to table 1A.10 of the 1990 autumn statement.

Mr. Steinberg

Does the Chief Secretary agree that the Government plan to spend less in real terms on education in 1983–84 than in the previous year? If so, was not it a hollow promise for the Prime Minister to claim that he was interested in education and attached priority to it? Will the right hon. and learned Gentleman ensure that extra resources are put into the education budget, if only to save the face of the Prime Minister?

Mr. Mellor

I think that the hon. Gentleman meant 1993–94——

Mr. Steinberg

indicated assent.

Mr. Mellor

I say that just to show that I was listening.

A substantial increase for education for next year was announced in the autumn statement. The final figures for the third year are always considered in the public expenditure survey negotiations immediately preceding the autumn statement of the November before April 1993, so we must see what the circumstances are then.

One of the points that need to be borne in mind about education in recent times is the fall in the number of school age pupils. The key indicator is expenditure per pupil, which under this Government has increased by 50 per cent. in real terms for secondary school pupils, and that trend is set to continue.

Mr. Ian Taylor

Does my right hon. and learned Friend agree that the two Departments that have done well out of the autumn statement are the Department of Health and the Department of Education and Science, and that that shows the Government's commitment to helping people in the community who most need assistance when inflation is running at current levels? Is not that a sign of a caring Government?

Mr. Mellor

My hon. Friend is right. I have already made the point about education and I should like to add that the budget for health for next year was increased in the autumn statement by about £3 billion, which means an increase over two years of £6 billion. I am not sure what the right hon. and learned Member for Monklands, East (Mr. Smith) and his colleagues will find to complain about in that.

Mrs. Beckett

I, too, congratulate the new Chief Secretary on his appointment. We were also pleased to learn that the new Chancellor told the Treasury and Civil Service Select Committee that he thinks that the Government should look after manufacturing industry. How do the Government reconcile that with the fact that their spending plans show that over the planning period, as my hon. Friend the Member for City of Durham (Mr. Steinberg) said, the Government intend to cut spending in real terms not only on education but on the work of the Department of Trade and Industry, on research and development, and even on training to reduce the skill shortages that are feeding inflation? Or is it just that there is no relationship between what the Government say and what they do?

Mr. Mellor

I think that the hon. Lady's problem is more fundamental. She seems to think that the only way to assist manufacturers is to spend Government money on them, when it is the framework in which manufacturing industry has to operate which is the key. It was the improvement in that framework which led to massive increases in productivity and manufacturing output in the 1980s, and the same improvement will ensure that manufacturing comes through the present difficult period and goes on to further success.

The hon. Lady will be aware that it is no freak occurrence—although it did not occur at all under Labour Governments—that under this Government our share of world trade is increasing.

Mr. John Marshall

I thank my right hon. and learned Friend for the massive increases proposed for transport, particularly for London Regional Transport. May I look forward to the day when that beneficence expands to include improving the Northern line?

Mr. Mellor

I am grateful to my hon. Friend. He recognises that about £700 million has been made available for rail and underground improvements to benefit major parts of London's network. I will ensure that his views on the Northern line are passed on to London Regional Transport. It is a great myth that there is under-investment, as British Rail and London Underground will be spending about £750 million in the next three years on safety alone. That shows just how much investment is going into public transport.