HC Deb 25 November 1971 vol 826 cc452-3W
Mr. Green

asked the Chancellor of the Exchequer how the additions to public expenditure which he announced on 23rd November will be phased; and what will be the effect on the rate of increase in public expenditure.

Mr. Maurice Macmillan

The present estimated phasing of the additions is as follows:

£ million at 1971 Survey prices
1972–73 1972–73 1972–73
Defence Budget 1 2 2
Trade, industry and employment 1 3
Nationalised industries' capital expenditure 48 39
Roads 22 29
Surface transport 7 9
Total 79 82 2

The acceleration of payment of investment grants adds £;10 million in 1971–72 and £15 million in 1972–73, with corresponding reductions in the two succeeding years.

The annual percentage increases in total public expenditure after the additions, excluding investment grants, are as follows (corresponding figures before the additions shown in brackets):

1972–73 1973–74 1974–75
In volume terms* 3.5 1.9 1.1
(3.1) (1.9) (1.4)
In cost terms† 4.2 2.6 1.7
(3.9) (2.6) (2.0)
* See Cmnd. 4829, paragraph 16, page 10.
† See Cmnd. 4829, paragraph 18, page 10.

The various measurements given in Cmnd. 4829 of average annual changes implied by the programmes between 1971–72 and 1975–76 are not affected by the additions.

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