HC Deb 08 April 1998 vol 310 cc253-4W
Mr. Malcolm Bruce

To ask the Chancellor of the Exchequer if he will expand Table B24, page 136, in the FSBR, March 1998, to give the relevant figures for(a) 1999–2000, (b) 2000–01, (c) 2001–02 and (d) 2002–03, using the assumption of 0.75 per cent. real growth in public spending after 1998–99. [36375]

Mr. Darling

[holding answer 30 March 1998]: The Government have not published spending plans beyond 1998–99. However, figures for the years 1999–2000 to 2002–2003, based on real growth in public spending of 3/4 per cent. a year from 1999–2000 onwards, can be calculated as follows:

Projections for General Government Receipts (GGR), General Government Expenditure (GGE) and the Control Total as a percentage of GPD from 1999–2000 to 2002–2003 are set out in tables B8 and B12 of the FSBR (March 1998). Revised forecasts for "net taxes and NICs" were published in table B8 on 27 March 1998, Official Report, column 348.

Table B5 of the FSBR contains medium-term forecasts of the public sector current balance, borrowing requirement and general government financial deficit on a UK national accounts basis. As these projections exclude windfall tax receipts and associated spending and the UK definition of GGFD is slightly different from the Maastricht version, the following small adjustments are necessary to produce figures on a consistent basis to those set out in Table B24: the current balance should be adjusted downwards by 0.1 per cent. of GDP throughout; the PSBR should be adjusted upwards by 0.2 per cent. of GDP in 1999–2000 and 0.1 per cent. of GDP in later years; and GGFD should be adjusted upwards by 0.2 per cent. of GDP in 1999–2000, 0.1 per cent. of GDP in 2000–01, 0.2 per cent. of GDP in 2001–02 and 0.1 per cent. of GDP in 2002–03.

Medium-term projections of the public sector financial deficit can be derived by adjusting the PSBR slightly to exclude financial transactions Financial transactions are 0.1 per cent. of GDP in 1999–2000 and in 2000–01, 0.3 per cent. of GDP in 2001–02 and zero in 2002–03.

GGE (X) can be derived from GGE by excluding privatisation proceeds, lottery-financed expenditure and interest and dividend receipts. These amounted to 0.8 per cent. of GDP in 1999–2000 and in 2000–01 0.7 per cent. of GDP in 2001–02 and in 2002–03.