§ Mrs. Dunwoodyasked the Secretary of State for Social Services what is the assumed level of inflation for the financial years 1983–84 and 1984–85 used in determining the cash allocations for the Health Service referred to in his reply to the hon. Member for Cheadle (Mr. Normanton), 15 July, Official Report, c. 459.
§ Mr. Kenneth ClarkeThe resource assumptions for regional health authorities for 1983–84 and 1984–85 set out in the reply to my hon. Friend the Member for Cheadle 669W (Mr. Normanton) on 15 July are based on the cash plans for the hospital and community health services in table 2.11 of the Government's expenditure plans (Cmnd. 8494), and were determined as described in part 5 of Cmnd. 8494. Cash plans imply no specific assumptions about future inflation.
The calculations to convert the previous White Paper plans into cash included allowances of 6 per cent. and 5 per cent. respectively for the years 1983–84 and 1984–85 respectively. These allowances were based on a broad political judgement of what the Government were at that stage prepared to provide and are not forecasts of actual pay and price movements.