HC Deb 17 March 1978 vol 946 cc400-2W
Mr. Wigley

asked the Chancellor of the Exchequer if he will publish a table in the Official Report showing the identifiable public expenditure per capita on trade, industry and employment in England, Scotland, Wales and the United Kingdom, respectively, during the latest year for which figures are available and analysing the expenditure into sectors corresponding to those in Table 2.4 of Volume 11 of Command Paper No. 7049.

Mr. Joel Barnett

Following is the information requested:

of all national health, social security and unemployment contributions from both employers and employees, the gross totals of all sales of goods and services by all nationalised industries and public corporations of any kind, including those in which the Government have direct or indirect interests, plus or minus any loss or profit or deficit or surplus, the gross total of all loans and borrowings by central or local government, by nationalised industries and public corporations. authorities, boards or bodies of any kind, including those in which the Government have a direct or indirect interest, distinguishing between internal and overseas sources, the gross amount of any expenditure investment or compensation by all sections of the public sector not covered by the above figures.

Mr. Denzil Davies

Most of the categories of expenditure and receipts quoted do not represent part of the gross domestic product spent on or by the public sector. For example (i) a large part of national insurance, and so on, contributions and general taxation is used to finance grants to, and therefore expenditure by, the personal sector; (ii) part of general Government fixed consumption and public sector fixed investment involve the use of imported goods and services, the production of which does not contribute to gross domestic product; (iii) a large part of the sales of goods and services by public corporations is to the private sector; and (iv) the value of the goods and services sold by public corporations includes, the value of "intermediate" goods and services purchased from other industries.

The information available about the items requested is published in the National Income and Expenditure Blue Book—annual—and Economic Trends quarterly. The following Blue Book table

(a) Earned Income (b) Investment Income
(i) (ii) (i) (ii)
Income divided equally between spouses Income all of one spouse Income divided equally divided spouses Income all of one spouse
Belgium 53* 56* 61* 61*
Denmark 64† 64† 64† 64†
France 36 36 55 55
Germany 47 47.5 48 48
Ireland 60 60 60 60
Italy 34 40 44‡ 50‡
Luxembourg 53 55 55 55
Netherlands 50 67 67 67
United Kingdom 60§ 83 98 98
USA 54║ 54║ 54║ 54║
Japan 25¶ 47¶ 57¶ 57¶
General Notes
A. All figures are for a married couple with no children.
B. It is assumed that the income is either all from employment or all from investments which do not enjoy any special reliefs.
C. Allowance has been made for personal reliefs, minimum expenses deductions, deductible social security contributions and other flat-rate reliefs.
D. Exchange rates are those for 9th March.
E. Tax rates used are for 1978, except for France, USA, Japan (all 1977), and United Kingdom and Ireland (both 1977–78).
Individual Countries
* Belgium—includes local income tax at the rates applicable to the majority of the population.
† Denmark—includes local income tax at the Copenhagen rate.
‡ Italy—includes local surcharge on investment income at the rate of 15 per cent.
§ United Kingdom—assuming the spouses elect to be taxed on their employment income as if they were two single people. if no election is made, the rate would be 83 per cent.
║ USA—includes local income tax at the California rates.
¶ Japan — includes prefectural and municipal taxes at the rates applicable to the majority of the population.

numbers indicate the main sources of annual estimates:

National taxation 9.1 and 9.7
Local government taxation 8.1
National insurance, National health, and Redundancy Fund contributions 7.1 and 7.4
Sales by public corporations 6.1
Gross trading surpluses of public corporations 6.1 and 6.4
Public sector borrowing 13.10
General government expenditure 9.1 and 9.4
Public corporations' investment 6.5

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