§ Mr. ButterfillTo ask the Chancellor of the Exchequer what is the current value in real terms of the public sector debt interest payments for each year since 1979(a) in money terms and (b) as a proportion of gross domestic product; and if he will make a statement.
§ Mr. LilleyThe table shows figures for general Government gross debt interest payments.
Year 1Real terms £ billions Percentage of money GDP 1979–80 16.5 4.5 1980–81 16.8 4.8 1981–82 17.9 5.1 1982–83 17.4 4.9 1983–84 17.5 4.7 1984–85 18.4 4.9 1985–86 19.1 4.9 1986–87 18.4 4.5 1987–88 17.7 4.2 1989–89 16.8 3.8 1 1987–88 prices, using the GDP deflator. Over the whole period general Government debt interest payments are broadly unchanged in real terms. As a proportion of GDP interest payments have fallen significantly from their 1981–82 peak and have fallen every year for the last four years. Interest payments are forecast to fall further over the next four years in both real terms
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"Real short term interest rates and 12 month inflation rates in the European Community countries based on inflation rates which exclude owner occupier housing costs January 1988 3Latest Inflation rate Real interest rate Inflation rate Real interest rate Germany 0.5 2.9 3.0 3.9 France 2.3 5.9 3.6 5.2 United Kingdom 3.7 5.0 5.9 7.8 Italy 5.0 5.2 7.0 5.2 Spain 4.4 8.0 6.6 7.7 Netherlands -0.2 4.6 0.7 6.1 Belgium 0.9 5.6 3.0 5.1 Portugal 8.6 4.8 13.2 -0.4 Greece 14.2 2.2 13.0 6.2 Denmark 4.4 4.3 4.9 3.8 Ireland1 2.3 6.5 3.2 5.0 Luxembourg2 0.7 5.9 3.2 4.9 and relative to GDP. The declining burden of debt interest has made room for more spending on priority services within a given total for public spending.