§ Mr. BettsTo ask the Chancellor of the Exchequer if he will indicate which local authority expenditure counted against the public expenditure syndicate control total and the PSBR in 1979; and what changes have subsequently been made to those definitions.
§ Mr. AitkenThe public expenditure planning total used in 1979 included the expenditure of local authorities, excluding debt interest. The present equivalent, the public expenditure control total, also includes local authority expenditure but including debt interest payments. The present control total, unlike the planning total in 1979, measures local authority expenditure net of VAT refunds and includes the capital value of certain leases. Between 1989 and 1991, the public expenditure survey was conducted using the new planning total, which included central Government support for local authorities rather than local authorities' expenditure.
The definitions of the public expenditure planning and control total and the public sector borrowing requirement are independent. The definitional changes in the public expenditure planning and control total have no implications for the PSBR.
Local authorities are part of the public sector; their expenditure is thus a determinant of the PSBR. This was equally so in 1979.