§ Mr. BettsTo ask the Chancellor of the Exchequer if he will set out in the form of table 4A9 of the Financial Statement and Budget Report 1995–96, revised tables, what the average ratio is if non-North sea taxes and national insurance contributions to non-North sea gross domestic product for(a) 1965–66 to 1969–70, (b) 1970–71 to 1973–74, (c) 1974–75 to 1978–79 and (d) 1979–80 to 1996–97. [21759]
§ Sir George Young[holding answer 28 April 1995]: The figures requested are (a) 34¼ per cent., (b) 34¾ per cent., (c) 36 per cent, and (d) 37 per cent. But the tax burden should not be looked at alone. Since 1979 the public finances have been in much better shape and people are much better off than in the period 1974–75 to 1978–79.
The average public sector borrowing requirement has been 2.5 per cent. of gross domestic product well below the 6.8 per cent. average during the 1974–77 to 1978–79 Government. Sound public finances are the key to lasting improvements in living standards.