HC Deb 03 March 1986 vol 93 cc29-31W
Mr. Chope

asked the Chancellor of the Exchequer if he will publish in the Official Report the details of the calculations of the cost of Her Majesty's Opposition's spending proposals which he undertook to provide during the debate on the public expenditure White Paper on 20 February, Official Report, column 513.

8. Mr. MacGregor

The details of the Opposition spending commitments with an annual cost of £24 billion to which I referred in the debate on the public expenditure White Paper are set out in the table. The notes to the table give the relevant references to Opposition speeches and publications.

Labour's Spending Plans: Principal Components
Notes
Aid 900 1
Industry 11,33 2
National Investment Bank 48 3
Employment
Training for unemployed 900 4
Community programme uprating 200 5
Educational maintenance award 965 6
35 hour week 3,000 7
Minimum wage 1,000 8
Regional employment subsidy 500 9
Energy 750 10
Arts 140 11
Transport
Roads 706 12
Rail 248 12
Airports and Ports 154 12
Housing
New build 3,000 13
Rehabilitation 250 14
Urban Programme 500 15
Sewerage 250 15
Education
Under 5s 400 16
Teachers 235 17

Notes
Buildings and equipment 871 18
Close private schools 300 19
Student grants 125 20
Health NHS 780 21
Social Security
TV licence for pensioners 325 22
Maternity and death grants 220 23
Child Benefit 1,450 24
Pensions 1,650 25
Early Retirement 2,600 26
Unemployment Benefits 500 27
Minor Measures 60 28
Total 24,160

Notes:

1. Commitment to double aid within 2–3 years of taking office. Phasing of +900, +2000, +31000 assumed. (Neil Kinnock in The Guardian of 30 July 1985).

2. 86–87 cost of commitment to increase industrial support by 50 per cent. (John Smith in Tribune 8 November 1985).

3. Based on assumed lending of £2 billion in year one and interest subsidy of 4%. on 60%. of loans. No allowance for bad debts. (NIB described by Roy Hattersley, in a speech in London on 16 May 1985.)

4. Estimated cost (in 1986–87 prices) of commitment to 5-fold increase in training for adult unemployed. (Charter for Young People, June 1985).

5. Adjusted pay rates—in line with Local Authority workers—and more training. (Charter for Young People, June 1985).

6. £27 per week for over 16s in full time education. (Charter for Young People, June 1985).

7. Cost in public services only. ("Working Together", April 1985).

Public services cost only of minimum wage set at two thirds of average earnings. (Conference motion 1983).

9. Interpretation of uncosted commitment, based on 1976 subsidy of £2 a head per week, uprated in line with inflation and applied to manufacturing industries only. ("A New Partnership, A new Britain" —TUC/Labour document, August 1985).

10. Mid-point estimate of cost of conservation measures only —mainly a public sector conservation programme. No allowance for increased investment in non-nuclear capacity which would fall mainly on the industry and on prices ("A New Partneship").

11. Doubled funding of performing and creative arts and zero rating for VAT. (Norman Buchan, Financial Times, 6 August 1985).

12. 1986 Update of commitments in "Reconstruction of Britain" (TUC 1981) Supported in "A New Partnership".

13. 125,000 new starts a year at £24,000 each. ("A New Partnership").

14. 25,000 renovations a year at £10,000 each. ("A New Partnership").

15 First year of a five-year programme to increase Urban Programme by £2.5bn over 5 years, and sewerage investment by £1.25bn over 5 years ("Public Investment in the Economy"—TUC, October 1984, endorsed in "A New Partnership, A New Britain")

16. 200,000 new places in nursery schools. The Charter for the under 5s (April 1985) recommended a right to pre-school education for all 3 and 4 years olds. Assumes 80 per cent. take-up.

17. 14,000 more teachers and £60m on training. Labour's own estimates, quoted by Giles Radice in The Guardian, 17 April 1985.

18. £781m on school buildings, £90m on books (as Note 17).

19. Assumes 500,000 extra pupils in the state sector. (Charter for pupils and parents).

20. Restoration of mandatory award to 78–9 levels. (Charter for Young People, June 1985).

21. £475 million for phasing out of charges, remainder real increases in pay and capital expenditure and end to competitive tendering. ("NHS in Danger"—NEC statement, October 1983).

22. Hansard 27 March 1985–Mr. Gerald Kaufmann.

23. £120 million maternity grant, £100 million death grant (1984 conference motion).

24. £3 a week increase. (Roy Hattersley, Hansard 20 March 1985). But note new proposal by Michael Meacher to double child benefit. Would cost another £1.95 billion.

25. Pensions increased by £5 per week (single) and £8 (couple). (Hattersley, Hansard, 20 March 1985).

26. Reduction in retirement age to 60 for men. (Neil Kinnock, 24 June 1985, at TGWU conference).

27. Long term rate of supplementary benefit to unemployed after a year on benefit (Hattersley, Hansard, 20 March 1985).

28. Concessionary fares, strengthening NEDC, more grants to other bodies.