HC Deb 27 April 1983 vol 41 cc320-1W
Mr. Adley

asked the Chancellor of the Exchequer (1) if he will indicate, for the years 1950 to 1982, the proportion of gross domestic product accounted for by the service sector;

(2) if he will make a statement on the contribution currently being made by the service sector to the United Kingdom economy; and what future trends he envisages.

Mr. Brittan

The service sector makes a large and vital contribution to the United Kingdom economy. That contribution has grown gradually over the past 20 years and the sector now accounts for over 40 per cent. of gross domestic product. I am sure that the sector has a bright future. The precise extent of its contribution in years to come will depend on many factors including the demands of the market and the state of the world and domestic economies. Comparable figures are not available on the proportion of gross domestic product accounted for by the service sector before 1960. Figures for 1982 will not be available until later this year. The following table sets out the figures for 1960–1981:

Service sector contribution to GDP (income-based measure)
Year Percentage GDP
1960 36.6
1961 37.4
1962 37.6
1963 37.9
1964 37.6
1965 37.6
1966 38.2
1967 38.8
1968 39.3
1969 38.8
1970 39.1
1971 38.9
1972 39.6
1973 40.5
1974 40.0
1975 39.9
1976 39.9
1977 40.0
1978 41.1
1979 41.7
1980 41.0
1981 41.6

Source: National Income and Expenditure 1982 Edition, Table 3.1


(1) The service sector has been defined to include the following order groups of the Standard Industrial Classification, 1968 Edition: XXII Transport and Communication

XXIII Distributive trades

XXIV Insurance, banking, finance and business services

XXVpt Professional and scientific services (excluding public health and education services)

XXVI Miscellaneous services.

(2) Within the total services sector the contribution of the insurance, banking, finance and business services order is measured inclusive of net receipts of interest by banks and other financial institutions.

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