HC Deb 16 July 1985 vol 83 cc96-7W
Mr. Freud

asked the Secretary of State for Education and Science whether he will list in the Official Report the total education budget in real terms and in cash terms (a) including that amount representing teachers' pay and (b) excluding that amount representing teachers' pay (i) in 1984–85 and (ii) in each of the next three years; and whether he will state the proportion of the education budget represented by teachers' pay in each case.

Sir Keith Joseph

The information including teachers' pay is as follows:

Education Provision 1984–85 1985–86 1986–87 1987–88
£ million £ million £ million £ million
Cash 13,316 13,725 13,430 13,630
Real Terms 1984–85 base 13,316 13,066 *12,240 *12,002
* Real terms based on total cash figures including provisional plans for local authority current expenditure, subject to review.

Notes:

(1) within these totals:

central Government expenditure:

  • 1984–85: provisional outturn (Cmnd. 9569)
  • 1985–86/1987–88: Cmnd. 9428 plans

local authority current expenditure

  • 1984–85: provisional outturn
  • 1985–86: local authority budgets
  • 1986–87/1987–88: Cmnd. 9428 provisional plans, subject to review.

The figures for 1985–86 onwards the figures do not include funds transferred to MSC of funds for "Training for Jobs." The sums involved are £62 million in 1985–86, £105 million in 1986–87 and an equivalent sum in 1987–88.

(2) Cash figures adjusted for general inflation as measured by GDP deflator at market prices.

No specific proportion of the planned provision for 1985–86 onwards is attributable to teachers pay; it is not therefore possible to show the figures excluding it nor to state the proportion of the education budget which it represents. It is for local authorities as employers to accommodate the pay of teachers in schools and further education within the total cash provision, having regard to other claims. Outturn figures for local authority expenditure for 1984–85 (including expenditure of teachers' pay) are not yet available. In 1983–84, the latest year for which actual expenditure is available, local education authorities spent £5.9 billion on teachers' salaries in schools and further education out of a total of £8.35 billion net institutional expenditure.

Mr. Freud

asked the Secretary of State for Education and Science what proportion of gross national product has been spent on the education budget in each year since 1979; and what are the projected figures for each of the next three years in each case (a) including pay and (b) excluding pay.

Sir Keith Joseph

It is more realistic to express such expenditure as a percentage of gross domestic product (GDP). The figures are as shown. For 1985–86 onwards the GDP figures used are the projections shown in the Financial Statement and Budget Report 1985–86.

Financial year Education budget a proportion of GDP* †
1979–80 4.2
1980–81 4.4
1981–82 4.4
1982–83 4.3
1983–84 4.2
1984–85 4.1
1985–86 3.9
1986–87 3.5
1987–88 3.4

* Education expenditure for which the holder of my office is responsible, ie, on universities in Great Britain, mandatory awards in England and Wales, local authority sector expenditure in England and other central Government expenditure almost entirely in England. Gross domestic product for the United Kingdom.

Education budget totals made up from:

central Government expenditure:

  • 1984–85: provisional outturn (Cmnd. 9569)
  • 1985–86: Cmnd. 9428 plans.
  • 1987–88

local authority current expenditure

  • 1984–85: provisional outturn
  • 1985–86: local authority budgets
  • 1986–87: Cmnd. 9428 provisional plans.
  • 1987–88

For 1985–86 onwards the figures do not include funds transferred to MSC for "Training for Jobs".

Education budget includes Government's provisional plans for local authority current expenditure in 1986–87 and 1987–88. These plans remain subject to review.

Information is not collected in a form which would allow the figures for past years to be shown excluding pay for all employees whose salaries are met from the education budget. For 1985–86 onwards, no specific proportion of planned provision for local authorities is attributable to pay; it is for local authorities as employers to accommodate it within total cash provision. Within planned provision the total for central Government expenditure for 1985–86 is consistent with the Government's assumption of pay increases of 3 per cent. for those groups for which it is responsible.