§ Mr. MarlowTo ask the Chancellor of the Exchequer what would be the estimated effect, according to the Treasury model, on(a) growth in 1992–93 and (b) inflation, of a six-month cut in VAT starting on budget day of 1 per cent., 2 per cent., 2.5 per cent., 3 per cent., 4 per cent. and 5 per cent., respectively; and what would be the estimated net cost to the Exchequer allowing for increased revenue through growth in each case.
§ Mr. Mellor[holding answer 4 February 1992]: It has not, since 1978, been practice to provide results from the
Local authority gross capital expenditure in the United Kingdom by economic category, 1986–87 to 1991–921 £ million 1986–87 outturn 1987–88 outturn 1988–89 outturn 1989–90 outturn 1990–91 outturn 1991–92 estimated outturn Cash Land and buildings 614 706 837 1,089 583 601 Construction 4,887 5,460 6,369 8,576 6,552 6,553 Vehicles, plant and machinery 825 798 897 1,055 617 628 Capital grants 828 925 963 1,121 992 976 Net lending 222 208 176 188 -50 10 Total 7,377 8,097 9,242 12,029 8,695 8,769 Real terms2 Land and buildings 801 874 967 1,181 583 561 Construction 6,380 6,760 7,358 9,304 6,552 6,125 Vehicles, plant and machinery 1,078 988 1,036 1,144 617 587 Capital grants 1,081 1,145 1,113 1,217 992 913 Net lending 290 257 204 204 -50 9 Total 9,630 10,025 10,677 13,050 8,695 8,195 1 The data given are consistent with figures published in the Statistical Supplement to the 1991 Autumn Statement (Cm. 1920). 2 Cash figures adjusted to 1990–91 price levels by excluding the effect of general inflation. The deflator used is that for GDP at market prices adjusted to remove the distortion caused by the abolition of domestic rates.