Balance of Payments

HC Deb 19 July 1978 vol 954 cc275-6W

Mr. Lawson

asked the Chancellor of the Exchequer what has been the total current account balance of payments deficit over the eight years from end-June 1970 to end-June 1978; and what proportion of that total deficit was incurred during the period since end-February 1974.

Mr. Robert Sheldon

The information is as follows:

(£m. seasonally adjusted) and Current balance
End-June 1970 to end-February 1974	+80
End-February 1974 to end-June 1978	-5359
Total	-5279

The invisibles surplus for January and February 1974 and for March 17974 have been taken as two-thirds and one-third of the estimate for QI 1974 as a whole. The invisibles surplus for 1978 QII is a projection.

By far the most important factor behind the deterioration in the current balance was the increase in our deficit on trade in oil, as the following figures show:

	£ million seasonally adjusted
	Balance on trade in oil	Balance on other transactions
End-June 1970 to end-February 1974	-2,943	+3,023
End-February 1974 to end-June 1978	-13,961	+8,602