HC Deb 24 January 1984 vol 52 cc466-7W
Mr. Hordern

asked the Chancellor of the Exchequer if he will announce revised cash limits for the National Health Service for 1983–84.

Mr. Peter Rees

Cash limits for the health services in England, Scotland and Wales will be increased to take account of the increased cost of doctors' and dentists' remuneration due to the award announced by my right hon. Friend the Prime Minister on 12 May 1983.—[Vol. 42, c. 434.] Health authorities and health boards are being fully funded for the cost in 1983–84 of the pay award. The increase in cash limits in respect of the award will be met from the Contingency Reserve and therefore does not add to the total of public expenditure.

The cash limit changes also take account of refunds of VAT payable to the NHS in the current year on certain existing contracted-out services. My right hon. Friend the

Adjustments
Department Vote Current cash limit

£

Doctors' and dentists' remuneration

£

Refunds of VAT

£

Total increase in cash limit

£

Revised cash limit

£

DHSS XI 1 8,431,142,000 28,900,000 -5,900,000 23,000,000 8,454,142,000
Scottish Office XV 14 1,344,115,000 4,130,000 -344,000 3,786,000 1,347,901,000
Welsh Office XVI 1 727,184,000 1,870,000 -465,000 1,405,000 728,589,000

The increase in Wales is subject to parliamentary approval of the necessary Supplementary Estimate. In England and Scotland the revised cash limits do not exceed the sums already voted by Parliament.

April 1975 to April 1983 April 1979 to April 1983 April 1982 to April 1983
At the upper quartile of gross manual earnings
single man +1 -2 +3
married man with no children +1 -2 +3
married man with 2 children +3 -2 +4
At the lower quartile of gross manual earnings
single man -2 -3 +4
married man with no children -1 -3 +4
married man with 2 children +1 -3 +5

Gross earnings are those recorded in the new earnings survey in each April for all adult full-time male manual workers whose pay was not affected by absence. For income tax, the rates and allowances are as follows: April 1975, 1975–76; April 1979, those specified in the Finance Act 1979, later replaced by the rates and allowances announced in June 1979; April 1982, 1982–83; April 1983, 1983–84. National insurance contributions are at the contracted-in rate. Changes in the purchasing power of net earnings have been calculated by reference to movements in the general index of retail prices.

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