HC Deb 27 January 1978 vol 942 c839W
Mr. Baker

asked the Chancellor of the Exchequer what average annual rates of growth, in demand terms, in total direct public expenditure, total indirect public expenditure and total public expenditure, are implied by the expenditure plans in Cmnd. 7049.

Mr. Joel Barnett

I will let the hon. Member have a reply as soon as possible.

Mr. Baker

asked the Chancellor of the Exchequer why estimates of shortfall in public expenditure in future years are given in Table 8 of Cmnd. 7049-I, but not in other tables.

Mr. Joel Barnett

The figures for future years in the main programme tables

Per cent.
1977–78 1978–79 1979–80 1980–81 1981–82
Public Expenditure as a proportion of GDP—
(1) at market prices 42 43 43 42 41
(2) at factor cost 48 49 49 48 47

These estimates use the figures of expenditure in cost terms, including the relative price effect, in years to 1979–80 given in Table 5.5 of Cmnd. 7049 In subsequent years it is assumed that public expenditure prices rise relatively to other prices at the long-term trend rate of about ½ per cent. per annum.