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.