HC Deb 24 October 1978 vol 955 cc875-7W
Mr. Lawson

asked the Chancellor of the Exchequer if he will provide a table

and excluding and including local authority rates.

showing, for each year since 1970 (a) gross domestic fixed capital formation, (b) the total value of gross domestic fixed capital formation which receives some form of Government financial support, (c) the total cost of such support, and (d) his best estimate of the value of gross domestic fixed capital formation which would not have taken place in the absence of such support.

Mr. Joel Barnett

The following table shows gross domestic fixed capital formation in the public and private sectors for the years 1970 to 1977 and the value of Government capital grams to the private sector in each year. These grants are virtually all for the support of fixed investment. Support for private sector investment is also provided by other means, such as loans and interest relief grant, and by capital allowances against income and corporation tax, but estimates of the proportions of these expenditures or costs which should be regarded as providing financial support for fixed investment are not available. Nor are estimates of the total amount of investment supported, or the extent to which that investment would not otherwise have been made.

FIXED INVESTMENT AND GRANTS TO THE PRIVATE SECTOR
Gross domestic fixed capital formation
Public sector Private sector £ million Capital grants by general Government to the private sector
1970 4,110 5,343 744
1971 4,430 6,091 857
1972 4,506 7,098 722
1973 5,734 8,415 793
1974 7,229 9,687 832
1975 8,957 11,860 955
1976 10,067 13,602 1,104
1977 9,499 15,930 1,159

£ thousand
Of which to
Total research grants etc. National Institute for Economic and Social Research University of Cambridge Other bodies
1973–74 85 82 2 London Business School
1 University of Liverpool
1974–75 125 90 34
1975–76 158 141 17
1976–77 180 151 22 4 University College of North Wales
1977–78 209 177 24 6 University of Newcastle
1978–79 221 195 19 4 University of Newcastle

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