§ Dr. Cunninghamasked the Chancellor of the Exchequer what deflator has been used in paragraph 2.27 of the Autumn Statement 1984 to produce the real terms reduction of about 3 per cent.
§ Mr. Peter ReesThe cost terms reduction is calculated by reference to the GDP deflator assumption in paragraph 1.60 of the Autumn Statement.
578W
§ Dr. Cunninghamasked the Chancellor of the Exchequer if he will publish the totals of local authority relevant current expenditure in 1984–85, plans and budgets, referred to in paragraph 2.27 of the Autumn Statement 1984, showing the figures (a) in 1984–85 definitions, comparable with table 2.18.1 of Cmnd. 9143–II, and (b) in 1985–86 definitions, comparable with the figure of £25.5 billion in paragraph 2.27.
§ Mr. Peter ReesThe 1984–85 figures are as follows:
Plans (Cmnd. 9143) Budgets England 20,389 21,451 Scotland 2,737 2,869 Wales 1,253 1,274 Great Britain 24,379 25,592 The 1985–86 figures have been adjusted to take account of the transfer of certain functions away from local authority responsibility. So, to put 1984–85 figures on to the same definition, adjustments need to be made for these transfers.
First, a deduction has to be made from plans and budgets to reflect the creation of London Regional Transport; secondly, a deduction has to be made to reflect the transfer to the Manpower Services Commission of funding for some aspects of non-advanced further education in England and Wales; and, thirdly, a deduction has to be made from Scottish provision to reflect the transfer of financial responsibility for two further education colleges from local authorities to the Secretary of State.
After making the estimated adjustments necessary to put the 1984–85 figures on to this definition, the figures are as follows:
Plans Budgets England 20,204 21,195 Scotland 2,727 2,859 Wales 1,250 1,271 Great Britain 24,181 25,323 Local authorities are paying the national insurance surcharge at 1 per cent. in 1984–85: they will not pay it in 1985–86. After further adjustment for NIS abolition, the Great Britain figures for 1984–85 become £24.0 billion (plans) and £25.15 billion (budgets). These compare with the Autumn Statement figure of £25.5 billion for 1985–86.