HC Deb 30 April 1990 vol 171 c440W
1990. Mr. Holt

To ask the Chancellor of the Exchequer what was the total cost of local government as a proportion of gross domestic product in(a) 1960, (b) 1970, (c) 1979, (d) 1985, (e) 1989 and (f)

Mr. Lilley

The importance of local government within the economy is generally measured on the basis of their expenditure. Such expenditure as a percentage of GDP, using definitions consistent with the information contained in the financial statement and Budget report, is given in the table.

Local authority expenditure1 as a percentage of GDP
Per cent.
1960 9¼
1970 13¼
1979 12½
1985 11¾
1989 10½
1990–912 11
1 Current expenditure on goods and services, current grants and subsidies, interest, capital expenditure and net lending.
2 FSBR forecast. If the effect of the abolition of domestic rates on the measure of GDP is excluded the figure becomes 10¾ per cent.