§ Mr. Deakinsasked the Chancellor of the Exchequer what has been the trend in local authority spending as a proportion of gross domestic product over the past decade.
§ Mr. Peter ReesOver the period 1972 to 1982, the last complete year for which figures are available, local authority current expenditure increased from about 9.7 per cent. of GDP to about 11 per cent. Local authority capital expenditure fell over the same period from about 3.7 per cent. of GDP to about 1.3 per cent. Two-thirds of that decrease occurred before 1979. These figures are on conventional national accounts definitions. They significantly overstate the reduction in new capital investment, especially in recent years, because they are net of local authorities' sales of council houses and surplus assets.
§ Mr. Strawasked the Chancellor of the Exchequer what effect he estimates an additional £100 million of revenue expenditure by local authorities will have upon (a) the public sector borrowing requirement and (b) the money supply, assuming that such additional expenditure is entirely Vote borne and (i) the 1983–84 penalty and target system operates and (ii) no penalty or target system operates.
§ Mr. Peter ReesI shall let the hon. Member have a reply as soon as possible.