HC Deb 21 January 1976 vol 903 cc490-3W
Mr. Andrew F. Bennett

asked the Chancellor of the Exchequer (1) if he will publish in the Official Report the number of times and the years child tax allowances have been raised since 1945; and if he will detail the value of the allowances in the relevant years;

(2) if he will publish in the Official Report the number of times, and in what years, child tax allowances have been increased since 1945; and if he will publish the size of the benefit following each of the increases.

Mr. Robert Sheldon

The changes made in the child tax allowances since 1945–46 are as follows:

used. Proportions calculated at current prices are given for the years 1946 to 1974 in the table below, together with the proportions based on estimates at constant 1970 prices for the years 1963 to 1974 only. Comparable proportions based on figures at 1970 constant prices are not available for earlier years, since the available figures, though notionally expressed at 1970 prices, reflect the relative prices of years other than 1970 and, for the reasons given on page 104 of "National Income and Expenditure pressed in this way do not add up to 1964–74", the components of GNP ex-

PUBLIC AUTHORITIES' CURRENT EXPENDITURE ON GOODS AND SERVICES EXPRESSED AS PROPORTIONS OF GROSS NATIONAL PRODUCT AT FACTOR COST
At Current Prices At Constant 1970 Prices
Central government Local authorities Total: Public authorities Central government Local authorities Total: Public authorities
1946 20.7 5.5 26.2
1947 13.1 5.8 18.9
1948 11.9 5.3 17.2
1949 13.1 5.2 18.3
1950 13.0 5.1 18.1
1951 14.0 5.1 19.1
1952 15.9 5.2 21.1
1953 15.4 5.1 20.5
1954 14.7 5.2 19.9
1955 13.8 5.3 19.1
1956 13.5 5.5 19.0
1957 13.0 5.7 18.7
1958 12.5 5.8 18.3
1959 12.7 5.9 18.6
1960 12.6 6.0 18.6
1961 12.6 6.1 18.7
1962 12.7 6.5 19.2
1963 12.3 6.7 19.0 14.5 7.7 22.2
1964 12.0 6.6 18.6 13.7 7.6 21.3
1965 12.2 6.9 19.1 13.6 7.7 21.3
1966 12.3 7.3 19.6 13.5 8.0 21.5
1967 12.8 7.8 20.6 13.9 8.3 22.2
1968 12.5 7.9 20.4 13.3 8.3 21.6
1969 12.2 8.1 20.3 12.6 8.2 20.8
1970 12.4 8.4 20.8 12.4 8.4 20.8
1971 12.5 8.5 21.0 12.3 8.6 20.9
1972 12.5 8.8 21.3 12.3 9.1 21.4
1973 11.9 8.8 20.7 11.7 9.2 20.9
1974 13.4 9.1 22.5 12.1 9.4 21.5

Mr. David Howell

asked the Chancellor of the Exchequer whether he will publish the five basic price indices of public sector activities, referred to in paragraph 69 of the Public Expenditure White Paper Handbook on Methodology, for the years 1968–69 to 1974–75.

Mr. Joel Barnett

The indices referred to were the Index of Retail Prices and four price indices implied in the estimates of national accounts at constant prices, referring to

  1. 1. Consumers' expenditure.
  2. 2. Gross domestic fixed capital formation.
  3. 3. Income from employment.
  4. 4. Exports of goods and services.

The Index of Retail Prices is widely published, for example in the Monthly Digest of Statistics. The other indices are shown in Table 17 of National Income and Expenditure, 1964–74 together with the corresponding index for gross domestic product at factor cost.

Mr. David Howell

asked the Chancellor of the Exchequer (1) whether he will

pressed in this way do not add up to total GNP.

publish the allowances made on the basis of past trends for the movements in the five basic price indices of public sector activities, referred to in paragraph 69 of the Public Expenditure White Paper Handbook on Methodology, for successive quinquennia starting in each of the financial years 1968–69 to 1974–75;

(2) if he will publish his estimates of the financial provision made for the relative price effect in successive quinquennia and the outturn experienced, if possible in the same format as the Chief Secretary's answer to the hon. Member for St. Ives (Mr. Nott) of 15th December 1975.—[Vol. 902, c. 455–6.]

Mr. Joel Barnett

The table below shows the estimates of relative price effect for the future years as published in successive White Papers, together with the most recent outturn estimates. The more detailed information requested is not readily available in this form. The first quinquennium for which provision was made was 1970–71 to 1974–75, but the table also shows the provision made in

£ million
1969–70 to 1970–71 1970–71 to 1971–72 1971–72 to 1972–73 1972–73 to 1973–74 1973–74 to 1974–75 1974–75 to 1975–76 1975–76 to 1976–77 1976–77 to 1977–78 1977–78 to 1978–79
Relative Price Effect (change over previous year)
In Cmnd. 4234 (at 1969–70 prices) + 146 + 152 N/A N/A
In Cmnd. 4578 (at 1970–71 prices) +93 +167 +183 +193
In Cmnd. 4829 (at 1971–72 prices) +213 +154 +167 +168
In Cmnd. 5178 (at 1972–73 prices) +157 +167 +181 +195
In Cmnd. 5519 (at 1973–74 prices) +200 +216 +219 +262
In Cmnd. 5879 (at 1974–75 prices) -137 -116 +160 +201
Outturn
In Cmnd. 5879 (at 1974–75 prices) +162 -83 +156 +1,330 +852*
* Provisional estimate.
Note: The figures shown are derived from the cumulative figures of Relative Price Effect shown in the White Papers. For example the figure of +152 shown for 1970–71 to 1971–72 in Cmnd. 4234 is the change between +146 shown for 1970–71 and +298 shown for 1971–72 (Cmnd. 4234 page 78). The figure of +1,330 for 1972–73 to 1973–74 in Cmnd. 5879 is the algebraic increase between –2,182 shown for 1972–73 and –852 for 1973–74 (Cmnd. 5879, Table 3.1).

Mr. David Howell

asked the Chancellor of the Exchequer whether he will publish a quantitative analysis of the marked changes in price relationships referred to in paragraph 3 on page 165 of Command Paper No. 5879, together with an account of the changes that have had to be made as a result of the marked changes in the method of estimation of the relative price effect.

Mr. Joel Barnett

An account of changes in relative prices, the most important of which were housing, construction and land costs, was given in the Treasury Memorandum to the Expenditure Committee, published in the First Report of the 1975–76 Session—C 69 II, paragraphs 17 to 21 on page 252. As mentioned on page 165 of Cmnd. 5879, the method of estimation of the relative price effect has been amended to take account of the level of prices in the first year of the survey in relation to the long-term trend. In addition, the projections are made in greater detail; in particular, construction is distinguished from other forms of investment.