HC Deb 21 July 1998 vol 316 cc484-7W
Mr. Swinney

To ask the Secretary of State for Scotland if he will list(a) the planned Scottish Office expenditure for the financial years 1999–2000 to 2001–2002 in cash and real terms by category of expenditure as expressed in table 1.4 of Serving Scotland's Needs, the Government's Expenditure Plans 1998–99, in 1997–98 prices using the GDP deflator, (b) the cumulative spending planned from 1999–2000 under each category in real terms and the total cumulative spending over this period in 1997–98 prices using the GDP deflator and (c) the difference between these cumulative totals and the amount that would have been spent (i) by category and (ii) for the total Scottish block equivalent assuming that spending was maintained at 1994–95 levels in real terms at current prices using the GDP deflator. [51219]

Mr. Dewar

The tables show the information requested on total Scottish Office expenditure in a format reflecting the new public expenditure control arrangements announced by my right hon. Friend the Chancellor of the Exchequer on 11 June 1998,Official Report, columns 1195–201. It is worth noting that direct comparisons of spending levels in 1994–95 with CSR plans are not meaningful. Definitional changes mean that the comparison is not truly like for like, and the 1994–95 levels of spending were not sustainable given the associated levels of public borrowing.

Table 2: Cumulative planned expenditure over CSR period (1999–2000 to 2001–02)
£ million
Cash CSR plans Real terms (1997–98 prices) CSR plans Cash if 1994–95 spend maintained in real terms
Total assigned budget3 44,173 40,798 45,634
New Deal for schools4, 5 80 74 0
Non-domestic rates6 4,425 4,088 3,912
Total budget7 48,677 44,960 49,547
1Under the new public expenditure control arrangements and devolution, the Barnett formula used to determine Scottish expenditure applies to the Departmental Expenditure Limit (DEL) in place of the former Scottish Block. Full details of the definitional changes between the DEL and the Control Total were given in the "Economic and Fiscal Strategy Report 1998", published in June
2Includes provision for the Crown Office, which will be within the responsibility of the Scottish Parliament
3Total budget assigned to the Scottish Parliament. There are some differences between the coverage of the Assigned Budget and the former Scottish Block, the main one being the exclusion of non-domestic rates. Figures here include expenditure on Hill Livestock Compensatory Allowance of around £37 million per year which is included in the DEL but excluded from the Assigned Budget for control purposes until 1999–2000
4Includes around £1 million for the New Deal for Young People in 1997–98 and £3 million for Childcare in 1998–99
5Total expenditure financed by the Windfall Tax and administered by the Scottish Office. The majority of expenditure on the New Deal is administered for all of Great Britain by DfEE and DSS. Total expenditure in Scotland on the New Deal is projected to be over £450 million in the period 1997–2002
6Figures for future years uprated in line with the RPI
7Total Scottish public spending within the responsibility of the Scottish Parliament or administered by the Scottish Executive

Table 3: Planned expenditure by programme in cash and real terms
£ million
Cash Real terms (1997–98 prices)
1999–00 2000–01 2001–02 1999–00 2000–01 2001–02
Central Government support for:
Local Authority current expenditure1 5,688 5,864 6,014 5,388 5,419 5,422
Local Authority non-housing capital expenditure2 345 356 392 327 329 354
Other programme expenditure
Agriculture, fisheries and food3 478 464 496 453 429 448
Arts, libraries and sport 80 82 84 76 76 76
Further, higher and other central government education (excluding student support) 1,013 1,070 1,136 959 989 1,024
Student support4 320 308 299 304 285 270
Health 4,924 5,214 5,534 4,664 4,818 4,989
Housing5 524 634 655 496 585 591
Industry, enterprise and training6 555 558 608 526 515 548
Law, order and protective services7 487 488 508 461 451 458
Crown Office 51 51 51 48 47 46
Other environmental services 323 325 327 306 300 294
Scottish Parliament and staff 55 80 47 52 74 42
Other Public Services 183 194 191 174 180 172
Roads and Transport8 267 270 282 253 250 254
Social Work 74 77 81 70 72 73
European Social Funds and European Regional Development Fund 153 163 173 145 151 156
New Deal for schools9 27 27 27 25 25 24
Total budget 15,548 16,226 16,904 14,727 14,994 15,240

Table 4: Cumulative planned expenditure by programme over CSR period (1999–2000 to 2001–02)
£ million
Cash CSR plans Real terms (1997–98 prices) CSR plans Cash if 1994–95 spend maintained in real terms
Central Government support for:
Local Authority current expenditure1 17,567 16,229 18,967
Local Authority non-housing capital expenditure2.10 1,094 1,010 2,497
Other programme expenditure
Agriculture, fisheries and food3 1,439 1,330 1,609
Arts, libraries and sport 246 227 267
Further, higher and other central government education (excluding student support) 3,218 2,972 2,911
Student support4 928 859 1,281
Health 15,672 14,471 13,927
Housing5 1,812 1,672 1,914

Table 4: Cumulative planned expenditure by programme over CSR period (1999–2000 to 2001–02)
£ million
Cash CSR plans Real terms (1997–98 prices) CSR plans Cash if 1994–95 spend maintained in real terms
Industry, enterprise and training6 1,721 1,590 2,144
Law, order and protective services7 1,483 1,370 1,511
Crown Office 153 141 152
Other environmental services10 974 900 291
Scottish Parliament and staff 182 168 0
Other Public Services 568 525 590
Roads and Transport8 819 757 931
Social Work 232 215 154
European Social Funds and European Regional Development Fund 489 451 401
New Deal for schools9 80 74 0
Total budget 48,678 44,961 49,547
1Includes non-domestic rate payments, which are outside the DEL
2The requirement that local authorities must use 50 per cent. of non-housing capital receipts to redeem debt will be abolished from 1 August 1998. This will allow local authorities to raise an estimated £75 million per annum extra from asset sales
3Includes market support under the CAP, which is outside the DEL
4Reflects the new Resource Accounting treatment of student loans announced in the "Economic and Fiscal Strategy Report 1998", hence it includes total expenditure on student grants, but only the subsidy element of student loans
5Expenditure funded through the Capital Receipts Initiative is now included in the DEL. Housing figures also include Housing Support Grant, which is outside the DEL
6This line covers Industry, enterprise and training expenditure administered by the Scottish Office only. Further expenditure administered by other departments on the New Deal is projected to be around £75 million in 1998–99, and almost £90 million per year in each of 1999–2000 to 2001–02
7A large proportion of spending on law, order and protective services is included under central government support to local authorities
8Includes support to nationalised industries
9Includes around £1 million for the New Deal for Young People in 1997–98 and £3 million for Childcare in 1998–99. Additional support for schools' capital expenditure is included in support for non-housing local authority capital expenditure above
10The cost of water services in 1994–95 was included in central government capital support to local authorities, but from 1996–97 responsibility switched to the water authorities, whose external finance is included under other environmental services

Sir Robert Smith

To ask the Secretary of State for Scotland, pursuant to his answer of 14 July 1998,Official Report, column 139, on his plans for allocating total expenditure within his responsibility, if he will give a breakdown of the figure for other environmental services. [51562]

Mr. Dewar

The Other Environmental Services programme covers a wide range of activities. The detailed allocation of resources among the various activities is currently being finalised and will be announced in due course.