Public Sector Borrowing Requirements

HC Deb 18 January 1982 vol 16 cc90-2W

Mr. Foulkes

asked the Chancellor of the Exchequer, if he will publish in the Official Report a table showing for each of the financial years 1970–71 to 1981–82 (a) the composition of the public sector borrowing requirement, in the same form as the final column, "public sector", of table 15 of the Financial Statement and Budget Report 1981–82 and (b) the link between public sector borrowing requirement and £M3, in the same form as table 3 on page 4 of "Economic Progress Report" number 123, of July 1980.

Mr. Brittan

[pursuant to his reply, 21 December 1981, c. 304–5]: The available information is as follows:

(a)

Public Sector Transactions
	1970–71	1971–72	1972–73	1973–74	1974–75	1975–76	1976–77	1977−78	1978−79	1979−80	1980−81
Taxes on income	7,539	8,088	8,158	9,579	13,635	17,204	19,701	20,642	23,001	26,856	31,864
Taxes on expenditure	8,527	8,902	9,487	10,252	11,885	14,892	17,042	21,091	24,341	32,648	38,463
National insurance, etc., contributions	2,660	2,985	3,492	4,106	5,410	7,173	8,838	9,757	10,243	12,028	14,554
Gross trading surplus	1,568	1,689	1,975	2,236	2,840	3,534	5,029	5,191	5,796	5,905	6,468
Gross rental income	797	831	922	1,118	1,475	1,790	2,192	2,327	2,581	3,121	3,611
Capital consumption	311	362	419	524	630	810	936	1,064	1,215	1,474	1,889
Interest—private sector and overseas	351	419	500	786	921	1,027	1,238	1,497	1,778	2,031	2,445
Dividends—private sector and overseas
Total	21,753	23,276	24,953	28,601	36,796	46,430	54,976	61,569	68,955	84,063	99,294
Current expenditure on goods and services	9,004	10,312	11,670	13,344	17,722	23,170	26,454	29,103	32,667	38,971	48,760
Capital consumption	311	362	419	524	630	810	936	1,064	1,215	1,474	1,889
Subsidies	916	1,042	1,102	1,855	3,317	3,504	3,522	3,276	3,777	4,620	5,629
Interest—private sector and overseas	2,128	2,298	2,493	3,318	4,213	5,112	6,429	7,222	8,351	10,585	12,497
Current grants to personal sector	4,349	5,056	6,028	6,614	8,329	11,139	13,231	15,788	18,584	22,093	26,635
Current grants abroad	181	214	246	363	302	508	879	1,375	1,752	2,001	1,433
Total	16,889	19,284	21,958	26,018	34,513	44,243	51,451	57,828	66,346	79,744	96,843
Current balance	4,864	3,992	2,995	2,583	2,283	2,187	3,525	3,741	2,609	4,319	2,451
Current balance	4,864	3,992	2,995	2,583	2,283	2,187	3,525	3,741	2,609	4,319	2,451
Taxes on capital and other capital receipts	630	699	784	959	942	865	878	924	932	1,117	1,242
Capital transfers from private sector	27	27	20	26	34	44	58	65	82	116	129
Gross domestic fixed capital formation	4,289	4,497	4,805	6,125	7,618	9,606	9,861	9,512	9,754	11,142	12,550
Increase in stocks	165	73	217	88	636	759	761	283	714	746	470
Capital grants to private sector and overseas	821	803	760	848	963	939	1,170	1,355	1,429	1,577	1,940
Financial deficit	246	−655	−1,983	−3,493	−5,958	−8208	−7331	6,420	−8,274	−7,913	−11,138
Transactions concerning certain public sector pension schemes	73	84	124	140	285	308	262	218	223	180	243
Accruals adjustments	−135	17	25	−507	−716	−442	−316	−520	−796	−2,074	−556
Miscellaneous capital transactions (net)	−488	75	−14	294	266	−469	73	872	385	89	− 1,230
Net lending to private sector and overseas	−197	−162	−293	−526	−1,070	−592	−313	−242	127	−391	−628
Net lending, etc., abroad	−278	−331	−375	−348	−580	−704	−706	−3	−364	239	363
Cash expenditure on company securities (net)	−39	−44	−17	−19	−226	−475	−190	501	−532	−44	−254
Total	−1,064	−361	−550	−966	−2,041	−2,374	−1,190	826	−957	−2,001	−2,062
Public sector borrowing requirement	818	1,016	2,533	4,459	7,999	10,582	8,521	5,594	9,231	9,914	13,200

Source: National Accounts.

(b)

Money Supply Growth and its Counterparts
£ million
	1970–71	1971–72	1972–73	1973–74	1974–75	1975–76	1976–77	1977−78	1978−79	1979−80	1980−81
PSBR	804	1,005	2,532	4,450	7,950	10,644	8,510	5,595	9,233	9,902	13,195
less Net acquisition of public sector debt by non-bank private sector	−540	−1,695	−1,115	−2,711	−4,176	−5,328	−7,179	−6,666	−8,555	−9,174	−10,874
plus Increase in sterling lending to:
(i) United Kingdom private sector	725	2,839	5,456	5,674	2,542	−612	3,391	3,743	6,296	9,330	9,244
(ii) Overseas sector	72	206	95	418	60	433	220	1,135	334	494	3,567
equals DCE	1,061	2,355	6,968	7,831	6,376	5,137	4,942	3,807	7,308	10,552	15,132
less Increase in external and foreign currency finance	1,019	865	−903	−1,360	−3,012	−1,662	−1,254	2,872	−968	−2,673	−3,109
less Increase in banks' net non-deposit liabilities	−84	−439	−802	−346	−626	−1,022	−859	−446	−1,045	−1,438	−1,347
equals Increase in sterling M3	1,996	2,781	5,263	6,125	2.738	2,453	2,829	6,233	5,295	6,441	10,676

Source: Bank of England.