HC Deb 09 November 1978 vol 957 cc316-7W
Mr. Wyn Roberts

asked the Chancellor of the Exchequer what proportion of the gross national income was taken up by (a) governmental services, (b) employers and (c) employees in each of the following periods: 1964 to 1970, 1970 to 1974 and 1974 to the latest available date.

Mr. Denzil Davies

The proportion of gross national product—GNP—taken up by general Government consumption and the proportion of GNP generated in the form of income from employment in each year since 1964 are given in the following table:

General Government final consumption as percentage of GNP at market prices* Income from employment as percentage of GNP at factor cost†
1964 16.3 67.1
1965 16.6 67.2
1966 16.9 68.5
1967 17.8 68.1
1968 17.5 67.7
1969 17.0 67.2
1970 17.4 68.6
1971 17.7 68.2
1972 18.3 67.9
1973 18.0 67.5
1974 19.8 71.5
1975 22.1 73.7
1976 21.5 71.4
1977 20.7 70.0
1978 1st half 20.6 70.3
* Expenditure based measure of GNP at market prices.
† Income based measure of GNP at factor cost.
Gross national income is not a term in general use and it has been taken to mean gross national product.

The first set of percentages shows the extent to which GNP has been used in general Government final consumption; the second set of percentages shows that part of GNP generated in the form of income from employment. The two sets are therefore not directly comparable.

It is not clear what the hon. Member means by the proportion of GNP taken up by employers. The factor incomes other than income from employment are gross trading profits and surpluses, self-employment income, rent and non-trading capital consumption. The relative importance of each of these is shown in table 3 of the " Additional tables on national income and expenditure " given in the October 1978 issue of Economic Trends.