HC Deb 13 February 1976 vol 905 cc407-8W
Mr. Lawson

asked the Chancellor of the Exchequer, pursuant to the Written Answer given to the hon. Member for Blaby on 5th February, what was (a) the total increase in public expenditure on goods and services between the financial years 1964–65 and 1974–75 expressed as a percentage of the total increase on national expenditure on goods and services over the same decade and (b) the increase in public sector employment over the nearest comparable decade expressed as a percentage of the total increase in employment over that decade.

Mr. Joel Barnett,

pursuant to his reply [Official Report, 11th February 1976; Vol. 905, c. 264], gave the following information:

The ratios are:

  1. (a) 31 per cent. at current prices and 26 per cent. at constant (1970) prices, and
  2. (b) 575 per cent.

The figures at (a) use total domestic expenditure at market prices as a measure of "national expenditure on goods and services".

Mr. Lawson

asked the Chancellor of the Exchequer, pursuant to the Written Answer given to the hon. Member for Blaby on 5th February, in what way the 65 per cent. figure disclosed in that answer was affected (a) by the rate of inflation and (b) by shifts in relative prices.

Mr. Joel Barnett,

pursuant to his reply [Official Report, 12th February 1976; Vol. 905, c. 303], gave the following in formation:

The ratio of 65 per cent. given in the previous answer referred to an increase between 1964–65 and 1974–75 of £31,781 million to £44,805 million in public expenditure and an increase of £48,709 million to £78,858 million in gross national product at factor cost. If inflation had been slower, so that all costs and prices in 1974–75 had been 20 per cent. lower than they in fact were, the 1974–75 figures would have been 20 per cent.—£8,961 and £15,772 million—less, and the increases would have been smaller by the same (absolute) amounts, at £22,820 million for public expenditure and £32,937 million for gnp, the ratio of the former figure to the latter is 69 per cent. If relative prices had moved differently, and public expenditure prices only had been 20 per cent. lower in 1974–75 than they were, the ratio would have been 47 per cent.