HC Deb 21 March 1978 vol 946 cc540-1W
31. Mr. Churchill

asked the Secretary of State for Defence on what grounds Her Majesty's Government have decided to reduce defence expenditure in the year 1979–80 compared with the level proposed in the 1976 Expenditure White Paper, Command Paper 6721.

Mr. Mulley

The Cmnd. 6721 figures for public expenditure for 1979–80 and 1980–81 were particularly provisional and they took no account of the developments which led to the Chancellor of the Exchequer's statement of 15th December 1976. The figures for these years were reviewed in the 1977 public expenditure survey in the light of all the relevant factors including, for the defence budget, the agreed NATO aim of 3 per cent. annual real increases in defence expenditure in the period 1979 to 1984. The revised plans for the defence budget published in Cmnd. 7049 reflected the results of that review and allow for 3 per cent. year-on-year growth in 1979–80 and provisionally, 1980–81. Compared with the provisional Cmnd. 6721 figures, these revised plans represent a decrease of less than 1 per cent. in 1979–80 and an increase of just under 2 per cent. in 1980–81.