§ Mr. Formanasked the Chancellor of the Exchequer, further to his Written Answer to the hon. Member for Carshalton on 15th November, if he will publish a table showing by how much gross domestic product increased or decreased
556W
Gross domestic product at current factor cost Expenditure based Income based Average earnings of full-time manual men aged 21 and over* in October of each year (United Kingdom) Monthly index of average earnings (GB) (older series seasonally adjusted—all employees) Index of prices of consumer goods and services† Percentage change over preceding year 1949 … +6.2 +7.3 +3.4 .. +2.4 1950 … +4.0 +3.5 +5.4 .. +2.9 1951 … +11.3 +10.9 +10.4 .. +9.0 1952 … +9.1 +9.1 +7.5 .. +6.2 1953 … +7.8 +6.3 +6.0 .. +1.7 1954 … +5.6 +6.4 +8.1 .. +1.7 1955 … +7.3 +8.0 +9.1 .. +3.5 1956 … +8.3 +7.2 +6.7 .. +4.3 1957 … +6.0 +5.4 +5.7 .. +3.3 1958 … +4.2 +4.2 +2.0 .. +2.7 1959 … +5.1 +5.6 +5.5 .. +0.6 1960 … +6.5 +8.7 +7.3 .. +1.0 1961 … +7.0 +5.8 +5.6 .. +2.8 1962 … +4.3 +4.6 +3.4 .. +3.9 1963 … +6.5 +6.6 +5.6 .. +1.9 1964 … +8.6 +8.2 +8.1 +7.6 +3.3 1965 … +6.9 +7.6 +8.2 +7.1 +4.8 1966 … +6.1 +5.4 +3.7 +6.6 +3.9 1967 … +5.5 +4.8 +5.3 +3.6 +2.5 1968 … +7.1 +7.8 +7.6 +7.8 +4.7 1969 … +5.5 +7.3 +7.9 +7.8 +5.4 1970 … +10.1 +9.8 +13.0 +12.1 +6.4 1971 … +13.4 +11.6 +10.3 +11.3 +9.4 1972 … +11.6 +13.2 +15.8 +12.9 +7.1 1973 … +16.3 +14.5 +14.2 +13.5 +9.2 1974 … +15.3 +14.6 +18.8 +17.8 +16.1 1975 … +25.5 +26.8 +22.5 +26.5 +24.2 1976 … +18.4 +17.7 +12.4 +15.6 +16.5 1977 … +12.7 +13.0 +8.8 +10.2 +15.8 * Employed in manufacturing and certain other industries. † Based on the implied consumers' expenditure deflator for the period 1949-62 and the general index of retail prices for the period 1963-77. exchange, which do not necessarily reflect the relative purchasing powers of the currencies. Direct comparisons between the countries are therefore inadvisable and even comparisons over time for individual countries should be made with caution.
at both current and constant prices in each year since 1949; and if he will show by how much average earnings increased in each case at both current and constant prices.
§ Mr. Robert SheldonFollowing is the information:
557WYear-to-year percentage changes in the gross domestic product at constant factor cost based on expenditure, income and output data and the average of the three are given on pages 126 to 129 of the October 1978 edition of Economic Trends.
The only available information on changes in average earnings on a consistent basis over the period 1949 to 1978 relates to manual workers in manufacturing and certain other industries from the regular survey conducted by the Department of Employment. The monthly index of average earnings of employees covering the whole economy was only introduced in January 1976. The increase in the annual average of this index between 1976 and 1977 was 9.0 per cent. The older monthly index of average earnings, which covers production and a limited number of other industries, was introduced from January 1963. Annual changes based on this index are given in the table above.
There is no unique way of measuring changes in the real value of gross earnings, part of which are deducted as taxes on income which, in turn, are spent or redistributed by Government in a variety of ways. In the table the year-to-year changes in average earnings are compared with the year-to-year changes in prices which underlie the Central Statistical Office estimates of the internal purchasing power of the pound.
A number of factors need to be taken into account in comparing changes in GDP with changes in average earnings. GDP covers all factor incomes in the United Kingdom—income from employment, self-employment, profits and rent. Earnings cover only part of income from
TAX THRESHOLD AS A PERCENTAGE OF AVERAGE EARNINGS Year Single person Married couple Married couple with 1child under 11 Married couple with 2 children under 11 Married couple with 3 children (2 under 11, 1 between 11 and 16) Married couple with 4 children (2 under 11, 2 between 11 and 16) per cent. per cent. per cent. per cent. per cent. per cent. 1977–78 24.9 38.4 44.3 49.8 55.9 61.8 1978–79 (September) 22.8 35.6 39.8 43.7 48.2 52.4 1977–78 excluding October 1977 increases (see Note) 22.3 34.2 40.2 45.7 51.9 57.8 As in the previous answer to the hon. Member, the earnings figures relate to full-time male manual workers aged 21 and over for 1977–78 up-dated to Octo- 558W employment, the principal omission being employers' contributions to national insurance, health and superannuation funds. Changes in average earnings are not the same as changes in total earnings which are the product of average earnings and numbers in employment. Finally the average earnings series shown in the table do not cover the whole economy.