HC Deb 15 February 1990 vol 167 c383
9. Mr. Tony Lloyd

To ask the Chancellor of the Exchequer what is his latest estimate of the public spending planning total for 1990–91.

Mr. Norman Lamont

The public expenditure planning total for 1990–91 has been set at £179 billion.

Mr. Lloyd

I am sure that the Minister will confirm that we have an historically low level of public spending. How then can he justify the present position? Owing to our current balance of payments deficit, one item on which spending will be cut in real terms is export promotion services.

Mr. Lamont

In fact exports are doing extraordinarily well: the latest figures show that they are up 15 per cent. on the previous year. If exports are to increase, what matters most is the competitiveness of British industry, and we are determined to achieve that.

Mr. Yeo

Has there ever been a period in British history when, at the same time, public expenditure has risen substantially in real terms, the proportion of gross domestic product gobbled up by the state has fallen and a considerable amount of public debt has been repaid?

Mr. Lamont

My hon. Friend is right. There have been large real-terms increases in specific priority programmes within total general Government expenditure, which at the same time has fallen as a share of GDP. I believe that that is entirely related to the sharp increase in our growth rate—compared with that of our European competitors—during the same period.