Public Expenditure

HC Deb 24 January 1980 vol 977 cc369-70W

Mr. Welsh

asked the Chancellor of the Exchequer what cuts he is proposing in public expenditure in 1981–82; and in what areas they will fall.

Mr. Biffen

We are continuing to review public expenditure for the years ahead, including 1981–82, and will announce our decisions in due course.

Mr. Welsh

asked the Chancellor of the Exchequer, if no reduction is made in the United Kingdom's contribution to the European Economic Community budget in 1981–82, by how much public expenditure in the United Kingdom will need to be reduced.

Mr. Biffen

We are continuing to review public expenditure and we are also seeking a very substantial reduction in our EEC contribution. As we have made clear, these exercises are related. In the Government's expenditure plans 1980–81 (Cmnd 7746) we indicated that the full net cost of the United Kingdom contribution to the Community under present arrangements wouldrise to £1,000 million in 1980–81. But we are determined that our contribution should in fact be reduced, so the hon. Member's question is a purely hypothetical one.