HC Deb 31 July 1998 vol 317 cc673-5W
Mr. Sayeed

To ask the Chancellor of the Exchequer if he will list the amounts of non-BSE related Government spending on agriculture in real terms for(a) each of the last 10 years and (b) the next three years. [54947]

Mr. Byers

Historical expenditure series for government expenditure on agriculture, fisheries, food and forestry are given in tables 3.2 and 3.3 of the "Public Expenditure Statistical Analyses" publication. The table excludes BSE expenditure. Provision for UK agriculture over the next three years has not yet been finalised, pending consultations in Wales and Northern Ireland on the allocation of their settlements.

£ billion
Year Expenditure1
1988–89 3.3
1989–90 3.0
1990–91 3.7
1991–92 3.7
1992–93 3.6
1993–94 4.5
1994–95 4.0
1995–96 4.4
1996–97 4.6
1997–98 4.0
1998–99 3.7
1 At 1997–98 prices

Mr. Sayeed

To ask the Chancellor of the Exchequer (1) if he will calculate the real increase or decrease in Government expenditure(a) for each Department and (b) in total, relative to his Department's forecasts for growth in the economy in each of the next three years; and what assumptions underlie these projections; [54962]

(2) what is the forecast growth for Government capital and current spending combined, relative to the predicted growth of the economy in each of the next three years. [54961]

Mr. Byers

I regret that it has not been possible to provide a substantive answer before the summer recess. I shall write to the hon. Member shortly and place a copy of the letter in the Library.

Mr. Sayeed

To ask the Chancellor of the Exchequer what contingency planning his Department has undertaken in respect of funding his expenditure plans if real growth is less than 1.75 per cent. rising to 2.25 per cent. in two years' time. [54963]

Mr. Byers

The Government have adopted a prudent approach so that it meets its fiscal rules over the economic cycle. We are planning for surpluses on current budget, including a margin within Annually Managed Expenditure and are basing our fiscal projections on cautious assumptions, audited by the National Audit Office. This prudent approach and the significant reduction in public borrowing since 1996–97 leave the public finances well placed to cope with the effects of any changes to the short-term economic outlook.

Mr. Sayeed

To ask the Chancellor of the Exchequer what estimate he has made of the size of the fiscal surplus or deficit resulting from combined Government spending on(a) capital and (b) current account over the next three years. [54948]

Mr. Byers

Forecasts for public sector net borrowing and the surplus on current budget consistent with the Government's spending plans were set out in tables 4.4 and 4.5 of theEconomic and Fiscal Strategy Report 1998 (Cm 3978).

Mr. Sayeed

To ask the Chancellor of the Exchequer what percentage of the national income will be spent on capital investment by the Government in the current year; and what was the average percentage in each of the last 10 years. [54952]

Mr. Byers

Public sector net investment as a share of GDP for the current year and for the previous 10 years is set out in table 4A.1 in the Economic and Fiscal Strategy Report, June 1998.

Mr. Sayeed

To ask the Chancellor of the Exchequer what are the expected capital savings on PFI contracts over the next three years; and what will be the resultant additional current spending. [54946]

Mr. Byers

Departments enter into PFI contracts when they are satisfied that the PFI route offers the best means of securing improved public services and value for money for the taxpayer over the lifetime of the contract.

Table B15 of the March 1998 Financial Statement and Budget Report provides a breakdown of anticipated investment by the private sector on PFI projects, with Table B16 providing a breakdown of the service payments the Government is committed to in respect of contracts that have been signed. These tables will be updated, and published, in September this year.