§ Mr. Ridleyasked the Chancellor of the Exchequer, to what causes he attributes the shortfall in public expenditure in 1976–77; and what he estimates the shortfall will be in 1977–78.
Mr. Joel Barnett,pursuant to his reply[Official Report, 7th November 1977 ; Vol. 938, c. 38],supplied the following information :
Some shortfall of expenditure below the planned level for the year is normal. In 1976–77 the shortfall in the volume of public expenditure was unusually large. Several factors were evidently at work. For instance. there was some tendency not to build up programmes for which lower levels were planned for 1977–78. Some new or expanded programmes did not develop as fast as the plans provided 131W for. Prices moved ahead more quickly than the cash limits had assumed and the limits may well have made managers more cautious in committing themselves to expenditure. In addition, Government lending to the nationalised industries fell short of the White Paper estimates.
It is too soon to provide an estimate of shortfall in 1977–78. The recently published Industry Act 1975 forecasts imply a view of shortfall in part of the field ; but it would not be practicable to amplify it at this stage.
§ Mr. Ridleyasked the Chancellor of the Chancellor of the Exchequer what saving in general Government expenditure results from a fall of 1 per cent. in the average interest rate paid by general Government.
Mr. Joel Barnett,pursuant to his reply[Official Report, 7th November 1977 ; Vol. 938, c. 38],circulated the following answer :
The nominal value of general Government debt in market hands is now about £80,000 million. A 1 per cent, reduction in the average rate paid on this amount would thus save £800 million a year in gross interest payments. A 1 per cent. fall in current interest rates would affect interest payments only on the floating debt and new longer-term borrowing, so that the saving in the first year would be only a small fraction of this amount.
§ Mr. Ridleyasked the Chancellor of the Exchequer whether the next public expenditure White Paper (a) will cover the full five-year survey period and (b) will include an analysis of the growth and use of resources over the full five-year period.
Mr. Joel Barnett,pursuant to his reply[Official Report, 7th November 1977 ; Vol. 938, c. 38],circulated the following answer :
The White Paper will include figures for the five years covered by the 1977 public expenditure survey. It will set the Government's expenditure plans in their economic and fiscal context.
§ Mr. Ridleyasked the Chancellor of the Exchequer when the public expenditure White Paper will be published.
Mr. Joel Barnett,pursuant to his reply[Official Report, 7th November 1977; 132W Vol. 938, c. 38],supplied the following answer :
As my right hon. Friend the Chancellor of the Exchequer made clear in his statement on 26th October, the aim is to publish the next White Paper around the turn of the year.