§ Mr. Gouldasked the Chancellor of the Exchequer how much of the lastest estimate of the public sector borrowing requirement is attributable to central 358W Government, the nationalised industries and local authorities, respectively; how much in each case is net capital expenditure; and how much would be saved if unemployment fell to 600,000.
§ Mr. Denzil DaviesAn analysis of the Budget forecast of the public sector borrowing requirement in 1976–77 by sub-sector is set out below. It is not the practice to publish details of estimates made between Budgets. The nationalised industries form the greater part of the public corporation sub-sector.
£ million Public sector borrowing requirement of which, borrowing from the private and overseas sector by— 11,962 central Government 10,426 local authorities 937 public corporations 599
Alternative Presentation Central Government borrowing, less lending to local authorities and public corporations 5,688 Local authority borrowing, including borrowing from central Government 2,504 Public corporations borrowing, including borrowing from central Government 3,770 Public sector borrowing requirement 11,962 The corresponding estimates of net capital expenditure, including net lending and expenditure on the acquisition of company securities, by central Government, local authorities and public corporations are £3,496 million, £4,361 million and £5,646 million respectively.
It is not possible to estimate the change in the public sector borrowing requirement that would occur if unemployment fell to 600,000 without knowing why the reduction in unemployment took place or when it was supposed to happen. The effect on the borrowing requirement would be quite different, for example, according to whether the reduction in unemployment was brought about by a fiscal reflation or by, say, an increase in demand for exports.