Mr Major’s Written Parliamentary Answer on Government Expenditure – 7 July 1988

Below is the text of Mr Major’s written Parliamentary Answer on Government Expenditure on 7th July 1988.

Mr. Andrew Mitchell To ask the Chancellor of the Exchequer (1) what is the percentage of value added by the farming industry which is accounted for by public money; (2) what is the percentage of value added by the manufacturing industry which is accounted for by public money; (3) what is the percentage of value added by the service industry which is accounted for by public money; (4) what is the percentage of value added by the coal industry which is accounted for by public money.

Mr. John Major The table shows general Government expenditure in each sector as a percentage of each sector’s contribution to gross domestic product. The information is drawn from the United Kingdom national accounts 1987 (CSO) except for the coal industry figures, which are based on Treasury estimates. I regret that more recent compatible data are not yet available. The information is subject to revision.
The figures for agriculture underestimate the true level of support, as they relate solely to expenditure by the Government and by the European Community and do not include costs borne by the consumer of holding CAP support prices above the levels obtainable on world markets. These agricultural estimates, together with those for the coal industry, are further understated because they are calculated using gross domestic product based on United Kingdom supported prices rather than value added at world market prices.

The figure for the coal industry in 1984 is heavily distorted by the loss in output resulting from the miners’ strike. The below table represents General Government expenditure as a percentage of gross domestic product by industry grouping.