HC Deb 18 November 1998 vol 319 cc586-7W
Mr. Heathcoat-Amory

To ask the Chancellor of the Exchequer if he will provide a break-down of the accounting and other adjustments line in Table B12 of the Pre-Budget Report. [59097]

Mr. Byers

[holding answer 10 November 1998]: The table provides a breakdown of the accounting and other adjustments shown in table B12 of the Pre-Budget Report, with accompanying brief explanatory notes.

Similar questions were answered on 22 July 1998, Official Report, columns 585-86, following the Comprehensive Spending Review White Paper. There have been a few changes to the presentation of the adjustments since then, reflecting the adoption of ESA95 in the national accounts which are explained in the Pre-Budget Report, paragraphs B26-B36.

Accounting and other adjustments in table B12 of the Pre-Budget Report
£ billion
1997–98 1998–99 1999–2000 2000–01 2001–02
6. Adjustments for Public Corporations 2.9 3.3 3.7 4.0 4.4
7. Intra-public sector debt interest -2.5 -2.3 -2.2 -2.1 -2.0
8. Financial transactions in DEL and AME -0.1 -0.9 -1.2 -1.5 -1.7
9. Other accounting adjustments 0.3 0.1 -0.1 -0.1 -0.2
Total 9.2 7.8 9.9 13.9 15.1

Notes:

  1. 1. Adds the value of general government non-trading capital consumption, which is included in Total Managed Expenditure (TME).
  2. 2. Adds back VAT refunded to central government departments and local government. Departmental Expenditure Limits and Annually Managed Expenditure programme expenditure are measured net of these refunds, while Total Managed Expenditure is recorded including the VAT paid. Adds VAT refunded to NHS trusts, BBC and ITN in respect of contracted out services for non-business purposes, and adds VAT refunds to DIY housebuilders.
  3. 3. Deducts traditional own resources (ie payments of Customs duties and agricultural and sugar levies) and VAT contributions to the European Community, which are included in the net payments to EC institutions line in AME, but excluded from TME.
  4. 4. Adds income tax credits which score as public expenditure under national accounting conventions. Includes Mortgage Interest Relief, Life Assurance Premium Relief, and (from 1999–00) Working Families' Tax Credit and Disabled Persons' Tax Credit.
  5. 5. Includes the Valuation Office and Financial Services Authority.
  6. 6. Accounting adjustments to move to a national accounts basis for scoring public corporations' current and capital spending; adds capital expenditure and debt interest payments outside the public sector and removes capital grants from general government.
  7. 7. Removes intra-public sector debt interest and dividend payments and receipts which are included elsewhere in Departmental Expenditure Limits and Annually Managed Expenditure.
  8. 8. Deducts those financial transactions which are scored in Departmental Expenditure Limits and Annually Managed Expenditure.
  9. 9. Other adjustments include the deduction of grants paid to local authorities by non-departmental public bodies classified to the central government sector and the deduction of Bus Fuel Duty Rebate.

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