§ Mr. Skeetasked the Chancellor of the Exchequer what proportion of the difference in public sector borrowing requirement between £8.5 billion and £13.5 billion referred to in his Budget Statement of 10 March, Official Report, c. 763, is accounted for by (a) the depth of the recession leading to the payments of higher benefits and reduced tax revenue, (b) the need to sustain increased expenditure for nationalised corporations and other State enterprises, (c) Departments of State exceeding cash limits and (d) the increased servicing of debt due to high interest rates.
§ Mr. Brittan(a) The impact of the recession directly added some £1½ billion to expenditure and reduced income by some £1 billion.
(b) The external financing limits of nationalised industries for 1980–81 were increased by some £900 million; this was met from the Contingency Reserve and therefore did not add to the PSBR.
(c) The spring Supplementary Estimates showed overspending of previously announced cash limits totalling £264 million, of which defence accounted for £260 million.
(d) Public sector debt interest payments were over £1 billion higher than forecast a year ago, reflecting both higher interest rates and borrowing than assumed a year ago.