§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer when(a) initial and (b) final decisions will be taken on the allocation of the contingency reserve for (i) 1997–98 and (ii) 1998–99; and if he will make a statement. [11342]
§ Mr. Darling[holding answer 29 July 1997]: Decisions on the allocation of the reserve for any particular year are taken in the course of that year as the circumstances requiring use of such funds arise.
§ Mr. BruceTo ask the Chancellor of the Exchequer what was the value of the contingency reserve set in each Budget since 1980 for the succeeding financial year 347W (a) in nominal terms and (b) as a percentage of total general Government expenditure; and if he will make a statement. [11371]
§ Mr. Darling[holding answer 29 July 1997]: The figures are given in nominal terms in the table. The coverage of the reserve has varied with the definition of the control aggregate. For example, in 1990–91, the planning total was redefined to exclude self-financed expenditure by local authorities. In 1993–94, this was in turn replaced by the control total, which included all local authority expenditure but excluded cyclical social security spending and privatisation proceeds.
Year Reserve (£ billion) As percentage of GGE 1981–82 1.6 1.3 1982–83 1.7 1.3 1983–84 1.5 1.1 1984–85 3.0 2.0 1985–86 3.0 1.9 1986–87 4.5 2.7 1987–88 3.5 2.0 1988–89 3.5 2.0 1989–90 3.5 1.7 1990–91 3.0 1.4 1991–92 3.5 1.5 1992–93 4.0 1.5 1993–94 4.0 1.5 1994–95 3.5 1.2 1995–96 3.0 1.0 1996–97 2.5 0.8 1997–98 2.5 0.8 1998–99 2.8 0.9
§ Mr. BruceTo ask the Chancellor of the Exchequer what is the present size of the contingency reserve for(a) 1997–98, (b) 1998–99 and (c) 1999–00, what allocations out of these reserves have so far been approved, and if he will make a statement. [11341]
§ Mr. Darling[holding answer 29 July 1997]: The reserve announced in November 1996 for 1997–98 was £2.5 billion. The main estimates included allocations of £200 million from the reserve to Departments and the summer supplementary estimates included allocations of a further £52 million. The reserve for 1998–99 will be £2.8 billion, reflecting the Chancellor's decision to allocate an extra £1 billion to schools and £1.2 billion for the NHS from the £5 billion reserve set in the November 1996 Budget. The reserve for 1999–00 was set at £7.5 billion in the November 1996 Budget, but the size of the control total and the reserve will be decided as part of the comprehensive spending revenue now underway.