Below is the text of Mr Major’s written Parliamentary Answer on Public Expenditure on 9th May 1988.
Mr. Allen To ask the Chancellor of the Exchequer if he will bring forward proposals to enable Parliament to vote spending authority for all or parts of the half of public expenditure not currently so voted; and if he will make a statement.
Mr. Major Parliament has authorised a number of types of public expenditure to be defrayed in ways other than annual voting of Supply. For example, payments from the national insurance fund are met from contributions and voted money on the authority of the Social Security Act 1975 and subsequent Acts. The United Kingdom’s gross contribution to the European Community is paid as a standing service on the Consolidated Fund under the provisions of section 2(3) of the European Communities Act 1972. For nationalised industries Parliament periodically sets borrowing limits. Local authorities raise that part of their expenditure which is not funded by voted grants either through rates or through their own borrowing.