§ Mr. Andrew SmithTo ask the Chancellor of the Exchequer what are the main expected effects on the public accounts from 1994–95 to 1997–98 of the national lottery, including the effects on general Government expenditure, general Government revenue, the general Government borrowing requirement and the public sector borrowing requirement.
§ Mr. Aitken[holding answer 9 December 1994]: Proceeds paid into the national lottery distribution fund are part of general Government revenue and spending of these proceeds part of general Government expenditure. The GGR figures in the "Financial Statement and Budget Report" include projections of £0.2 billion in 1994–95, £0.7 billion in 1995–96, £0.9 billion in 1996–97 and £1.1 billion in 199798. These figures do not include lottery duty because the net effect of the lottery on tax revenues is expected to be broadly neutral after redistributive effects. The GGE figures include projections of £0.0 billion, £0.5 billion, £1.0 billion and £1.0 billion 444W respectively for those years. The difference between these flows in any particular year affects the general Government borrowing requirement and the public sector borrowing requirement. The spending of these proceeds is outside the public expenditure control total.