§ 37. Mr. Crouchasked the Chancellor of the Exchequer what is his estimate of public expenditure in 1969–70 at 1965 Survey prices; and by what amount this figure exceeds or falls short of the estimate given in Table 18.1 of the National Plan.
§ Mr. DiamondThe estimate of public expenditure in 1969–70 at 1965 Survey prices on a definition consistent with that used in the National Plan is £13,390 million. This figure exceeds the estimate figure given in Table 18.1 of the National Plan by £95 million, and represents an annual average increase since 1964–65 of 4.4 per cent. compared with 4¼ per cent. envisaged in the National Plan.
§ 38. Mr. Peytonasked the Chancellor of the Exchequer whether he will publish his plans for the growth of public expenditure programmes in the years 1970 to 1975, inclusive.
§ Mr. DiamondI have nothing to add to my right hon. Friend's Statement of 20th February, 1969.—[Vol. 778, c. 779–81.]
§ 62. Mr. David Howellasked the Chancellor of the Exchequer what proportion of the proposed rise in public expenditure of 1 per cent. in real terms in the current year represents a rise in the real cost of existing activities as distinct from the 60W additional cost of new policy undertakings.
§ Mr. DiamondIt is not possible to make a meaningful estimate of this kind. The margin between new policy undertakings, new policy decisions relating to existing activities, and increases in the real cost of existing activities within existing policy is necessarily both arbitrary and imprecise.
§ 69. Mr. Higginsasked the Chancellor of the Exchequer what definition of public expenditure is used by his Department in relating actual levels of Government expenditure to earlier Government plans specifying the level of public expenditure.
§ Mr. DiamondThe definition of public expenditure used, for example, in the National Plan and the White Papers relating to Public Expenditure from 1968–69 to 1970–71 (Cmnd. 2764, Cmnd. 3515 and Cmnd. 3936) comprises current and capital expenditure by central and local government, other than debt interests, and the capital expenditure of public corporations other than the nationalised industries, the broadcasting authorities and the Covent Garden Market Authority. For the purpose of making a valid comparison between planned and actual expenditure over a period of time, allowance may also be made for changes in the scope of public expenditure—for example, the replacement of investment tax allowances by investment grants.
§ 85. Sir C. Osborneasked the Chancellor of the Exchequer what rate of inflation for 1969 he assumed in making his calculations of public expenditure.
§ Mr. DiamondThe estimates of expenditure for 1969–70 and 1970–71 in Table 2 of "Public expenditure, 1968–69 to 1970–71" (Cmnd. 3936) are at constant (1969–70 Estimates) prices. They make no assumption about any subsequent movement in prices during 1969.