HC Deb 02 December 1981 vol 14 c171W
Mr. Christopher Price

asked the Secretary of State for the Environmet what proportion of gross domestic product was devoted to local government current and capital expenditure in the United Kingdom in each of the last 10 years.

Mr. King

Following is the information:

Local authority current and capital expenditure* as percentage of gross domestic product at factor cost
Percentage of Gross Domestic Product
1971–72 13.5
1972–73 13.7
1973–74 15.2
1974–75 15.9
1975–76 15.8
1976–77 14.3
1977–78 13.1
1978–79 12.7
1979–80 13.0
1980–81 13.4
* Excluding debt interest.

Source: Financial Statistics and Economic Trends.

Mr. George Cunningham

asked the Secretary of State for the Environment whether his formula for penalising high-spending local authorities in the current year, or his proposed formula for doing so next year, excludes that part of variations in local expenditure which is due to variations in expenditure on police services, in particular as between those authorities where police expenditures are decided by local councils and that area where police expenditure is decided by the Home Secretary.

Mr. Heseltine

The current expenditure targets for 1981–82 apply to all items of local government expenditure, except those few priority items of inner city expenditure specifically excluded in my Department's circular letter of 3 September. The targets which I am proposing for 1982–83 would be based on each authority's total expenditure, including expenditure on the law and order services.

The Metropolitan Police budget is specifically approved by my right hon. Friend the Home Secretary. It is not subject to the general reductions the Government are looking for this year, or those I have proposed for next year. However, my right hon. Friend will have regard to these overall constraints in issuing the necessary approval.

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