Industry (Public Revenue and Expenditure)

HC Deb 27 January 1978 vol 942 cc837-8W

Mr. Norman Lamont

asked the Chancellor of the Exchequer whether he will estimate the total revenue of central and local government from the private sector of industry.

Mr. Robert Sheldon

I estimate that the contributions of businesses generally to central and local government revenue in 1976–77 from the following sources were of the order of:

	£million
Direct taxes	4,000
Indirect taxes	2,750
Local authority rates	1,220
Employers' national insurance contributions	4,150

	At 1970 factor cost prices 1976 £m.
A. SUPPLY OF RESOURCES
1. Gross domestic product (GDP) less compromise adjustment	48,566
2. Net flow of resources into (+) or out of (-) balance of trade in goods and services	479
3. Available for domestic use (line 1 minus line 2)	48,087
B. DOMESTIC USES RESOURCES
1. Investment—
(a) Private investment	4,286
(b) Nationalised industries' investment	1,600
2. Available for other public expenditure and private consumption (line A3 less lines B1(a) and B1(b))	42,200
C. USES OF RESOURCES FOR OTHER PUBLIC EXPENDITURE AND PRIVATE CONSUMPTION
1. Public expenditure—
(a) Public consumption	10,391
(b) Other public investment	2,351
(c) Total direct public expenditure ((a)+(b))	12,742
(d) Indirect public expenditure (transfers etc.)	6,595
(e) Total public expenditure (c)+(d))	19,337
2. Personal consumption—
(a) Privately financed personal consumption (line B2 minus line C1(e))	22,864
(b) Publicly financed personal consumption (indirect public expenditure lineC1(d))	6,595
(c) Total personal consumption (C2(a)+C2(b))	29,458

Mr. Norman Lamont

asked the Chancellor of the Exchequer whether he will estimate the total of public money paid to private industry.

Mr. Joel Barnett

The provisional out-turn in 1976–77, at 1977 survey prices, in Cmnd. 7049 is estimated to be about £1,510 million for subsidies, capital grants and net lending to private industry and agriculture in the United Kingdom. This estimate excludes payments made to private industry for the interest support costs of refinancing fixed rate export credits and for public transport subsidies, for which a breakdown between the amounts paid to private sector and to public sector concerns is not available.