HC Deb 03 April 1978 vol 947 cc62-3W
Mr. Lawson

asked the Chancellor of the Exchequer if he will explain the method used for converting last year's public expenditure plans at 1976 survey prices into the equivalent at 1977 survey prices, whereby planned net lending to the private sector of £432 million for 1977–78 at 1976 survey prices, according to Table 7 of Command Paper 6721, is converted to £99 million at 1977 survey prices, accordng to the Written Answer to the hon. Member for Blaby on 17th March, Official Report, columns 408–10, and planned net lending to the nationalised industries of £750 million at 1976 survey prices is similarly converted to £1,235 million at 1977 survey prices.

Mr. Joel Barnett

In each White Paper the revalued plans from the previous White Paper noted in it are adjusted, as far as possible, to the classifications of the new White Paper so that like can be compared with like. Part 6 of Cmnd. 7049-II pointed out the change in treatment of some public corporations. Government financing of them is now included in public expenditure, instead of their capital expenditure, thus applying to them the presentation adopted for nationalised industries in Cmnd. 6721. Net lending to the private sector—and also other capital expenditures—by these bodies scored as public expenditure in Cmnd. 6721 was, according to the usual convention, excluded from the revalued plans. At the same time net lending by central Government was expanded to include lending to these bodies.