§ Mr. FlightTo ask the Chancellor of the Exchequer what his estimate is of the level of central government gross debt interest in(a) 2006–07 and (b) 2008–09 derived from the projections for public sector net debt up to 2008–09 in Table B5 of the 2003 pre-Budget report. [145179]
§ Mr. BoatengPBR projections for public expenditure after the end of the 2002 Spending Review period are based on assumptions about overall growth rates, as set out in paragraph B27 of the pre-Budget report, rather than on forecasts of individual spending components. Therefore no forecasts of debt interest after 2005–06 are available.
§ Mr. FlightTo ask the Chancellor of the Exchequer if he will make a statement on the size of the increment in central Government gross debt interest from 2004–05 to 2005–06 relative to the size of the increments for the years(a) 2002–03 to 2003–04 and (b) 2003–04 to 2004–05. [145186]
§ Mr. BoatengEstimates of central Government gross debt interest depend on a combination of factors. In the PBR projection there is a large increase between 2002–03 and 2003–04, mainly due to higher RPI inflation in 2003–04, and between 2003–04 and 2004–05, mainly due to assumed interest rates, based on market expectations, which are much higher in 2004–05, and a larger rise in the RPI. The increase in debt interest between 2004–05 and 2005–06 is smaller because assumed interest rates rise by less than in the previous year and RPI inflation is lower.
161W
§ Mr. FlightTo ask the Chancellor of the Exchequer if he will make a statement on the size of the increment in central Government gross debt interest between 2004–05 and 2005–06 indicated in the pre-Budget report 2003 relative to that indicated in Budget 2003. [145187]
§ Mr. BoatengChanges to estimates of central Government debt interest payments since the Budget reflect the revision of projections of a number of factors, as outlined in paragraph B73 of the pre-Budget report.