HC Deb 28 February 1977 vol 927 cc96-7W
Mr. Lawson

asked the Chancellor of the Exchequer if he will provide figures of estimated public expenditure on (a) goods and services and (b) transfer payments, including loans and debt interest, expressed as a percentage of GDP at factor cost, in 1976–77 and in each of the 15 preceding years.

Mr. Joel Barnett

Figures are given below. Information for financial years 1961–62 to 1974–75 is not readily available.

PUBLIC EXPENDITURE* AS A PROPORTION OF GDP (AT FACTOR COST)
Goods and Services Per cent. Transfer Payments, etc.
1961 22.9 15.3
1962 23.7 15.1
1963 23.6 15.0
1964 23.9 14.9
1965 24.4 15.9
1966 25.3 15.9
1967 26.8 18.3
1968 26.9 19.2
1969 26.6 18.4
1970 27.0 17.6
1971 26.8 17.4
1972 27.0 18.0
1973 27.3 17.8
1974 29.4 20.3
1975 30.9 20.9
1975–76 30.9 20.6
1976–77 (estimate) 31.0 21.0
* As in Cmnd. 6721

Mr. John H. Osborn

asked the Chancellor of the Exchequer, if he will publish a table showing the impact of public expenditure cuts, agreed as part of the IMF package in December 1976, on each spending Department; and whether these cuts will result in reduction of staff, or cut-back in capital projects which will either improve communications, living standards or supply employment.

Mr. Joel Barnett,

pursuant to his reply [Official Report, 24th February 1977;

1977–78 1978–79 Spending authority
Defence budget … … 100 200 Ministry of Defence.
Overseas aid … … 50 50 Ministry of Overseas Development.
Food subsidies … … 160 57 Department of Prices and Consumer Protection.
Regional employment premium … … 150 170 Department of Employment.
Refinancing of fixed rate credits … … 100 200 Export Credits Guarantee Department.
Capital spending at CFE, for industrial training. … … 10 10 Local authorities.
Nationalised industries … … 110 130 Nationalised industries.
Road construction … … 75 50 Shared between Department of Transport and local authorities.
Housing … … —20 300 Local authorities, new towns and other public corporations.
Regional water authorities etc. construction. … … 75 130 Regional water authorities.
Local environmental services: construction and other capital. … … 50 50 Mainly local authorities.
Community ownership of development land. … … 35 35 Local authorities.
Courts—purchase of sites … … 2 — Mainly Property Services Agency.
Education—construction … … 22 11 Local authorities.
Other education expenditure including school meals. … … 20 30 Two-thirds local authority and one-third Department of Education and Science.
Health and personal social services—Construction. … … 10 20 Mainly Department of Health and Social Security.
Other National Health Service expenditure … … 5 5 Shared between Department of Health and Social Security and local authorities.
Northern Ireland … … 5 10 Public corporations.
Property Services Agency … … 27 45 Property Services Agency.
Expenditure on the Civil Service … … 30 10 Various Departments.
TOTAL … … 1,016 1,513

The announcement included a modest reduction in expenditure on the Civil Service and capital projects forgone must inevitably have some effect on communications, living standards or employment.

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