§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what assessment he has made of the effect on the public sector borrowing requirement in 1995–96 to date of cash flows associated with national lottery funds; and if he will make a statement. [20910]
§ Mr. WaldegraveThe table gives the relevant figures. The direct impact of the lottery, before allowing for the displacement of other indirect tax receipts, was to reduce the PSBR by £1.8 billion in the 11 months to February 1996.
The effect of the lottery on the PSBR will be largely unwound in due course, as the national lottery distribution fund runs down its surplus by increasing its grants to the good causes.
The direct effects of the lottery on the PSBR in the first 11 months of 1995–96 (£ million)
- Receipts
- Lottery duty: 566
- Income of the distribution fund:1,407
- Total general Government receipts: 1,973
- Payments
- Expenditure of the distribution fund: 128
- Total general Government expenditure: 128
- Public Sector Borrowing Requirement:-1,845