Category: Chief Secretary (1987-1989)

Below is the text of Mr Major’s written Parliamentary Answer on Personal Incomes on 10th November 1988.

Mr. Austin Mitchell To ask the Chancellor of the Exchequer what is his estimate of the percentage of total personal income taken by (a) direct taxes on households and (b) employees’ social security contributions in the current financial year; and if he will provide corresponding figures for 1973.

Mr. Major For 1973 direct taxes paid by the personal sector (both taxes on income and taxes on capital) were equivalent to 12.7 per cent. of personal sector income. Employees’ social security contributions were 2.7 per cent. It is not the practice to publish forecasts of these for the current financial year.

Below is the text of Mr Major’s written Parliamentary Answer on Output Statistics on 8th November 1988.

Mr. Austin Mitchell To ask the Chancellor of the Exchequer whether he will bring up to date the figures for output per head of the working population given in his answer dated 2 March 1987,Official Report, column 521, including an estimate for the current year; and if he will add broadly comparable figures for 1958, 1963 and 1968 together with the average annual increase between 1958 and 1973, 1973 and 1988, and 1979 and 1988.

Mr. Major The information requested is given in the table:

Year | Output (per head of workforce excluding class 13)

(1985 = 100)
1959 | 69.2
1963 | 74.8
1968 | 87.3
1972 | 95.1
1973 | 99.1
1974 | 97.6
1975 | 94.8
1976 | 95.6
1977 | 96.8
1978 | 99.2
1979 | 99.9
1980 | 96.2
1981 | 94.4
1982 | 95.8
1983 | 98.4
1984 | 98.4
1985 | 100.0
1986 | 102.1
1987 | 106.5

Year | Average annual increase percent.
1959 to 1973 | 2.6
1973 to 1987 | 0.5
1979 to 1987 | 0.8

Notes:
1. Based on mid-year estimates of the workforce.
2. 1959 is given as the first year because consistent figures on employees are not available earlier.
3. Figures on output for 1988 are not yet available.
4. Figures refer to United Kingdom.

Below is the text of Mr Major’s written Parliamentary Answer on Local Authorities (Cash Limits) on 8th November 1988.

Mr. Yeo To ask the Chancellor of the Exchequer what plans he has for cash limits on local authority capital spending.

Mr. Major As already announced, the Government plan to introduce with effect from 1990-91 the new public expenditure planning total set out in Command 441 and, subject to the approval of Parliament, a new system to regulate the capital finance of local authorities in England and Wales about which my right hon. Friends the Secretaries of State for the Environment and for Wales have consulted local government.

The Government’s broad intention is that, with effect from 1990-91, cash limits should be applied to the sources of finance for local authority capital expenditure which fall within the new planning total. The main existing cash limits on local authority capital spending in England and Wales (DOE/LA1 and WO/LA1) apply to expenditure net of receipts. With the recent surge in receipts, and given the difficulties of predicting future levels of receipts, these cash limits are no longer appropriate as instruments of financial management and control. Subject to consultation with the local authority associations, therefore, the Government propose that these cash limits, and the associated end-year flexibility and penalty arrangements, should be discontinued with effect from the current financial year.

Below is the text of Mr Major’s written Parliamentary Answer on Taxation and Social Security on 8th November 1988.

Mr. Austin Mitchell To ask the Chancellor of the Exchequer what is his estimate of the percentage of gross national product at factor cost taken by total taxes and social security contributions, respectively, in the current financial year and in 1973.

Mr. Major Total taxes and social security contributions were 33.2 per cent. of gross domestic product at market prices in the financial year 1973-74. The equivalent percentage for 1988-89 implied by the economic forecast published by the Treasury on 1 November is 37.4 per cent.

Below is the text of Mr Major’s written Parliamentary Answer on Business Investment on 28th October 1988.

Mr. Speller To ask the Chancellor of the Exchequer what is his latest estimate for the growth of business investment in 1988.

Mr. Major As the Chancellor of the Exchequer stated in his Budget forecast, total business investment is expected to grow by 9 per cent. in 1988.

Below is the text of Mr Major’s written Parliamentary Answer on National Economics Development Council on 27th October 1988.

Mr. Oppenheim To ask the Chancellor of the Exchequer when he last attended a meeting of the National Economic Development Council; and what matters were discussed.

Mr. Major I refer my hon. Friend to the reply I gave on 16 June at columns 268–69 to my hon. Friend the Member for Wyre Forest (Mr. Coombs).

Below is the text of Mr Major’s written Parliamentary Answer on Price Stability on 27th October 1988.

Mr. Latham To ask the Chancellor of the Exchequer whether he will make a statement on progress in achieving the Government’s ultimate objective of price stability.

Mr. Major The Government’s decisive action in raising interest rates this summer shows our determination to keep on top of inflation.

Below is the text of Mr Major’s written Parliamentary Answer on Government Revenue on 27th October 1988.

Mr. Chapman To ask the Chancellor of the Exchequer by how much his latest estimate of total Government revenue in 1988-89 differs from his Budget forecast.

Mr. Major Given the expectation of higher economic growth than previously forecast, it is likely that receipts will be higher in 1988-89 than forecast at Budget time. A new forecast of general Government receipts will be given in the autumn statement next month.

Below is the text of Mr Major’s written Parliamentary Answer on Advance Forecasts on 27th October 1988.

Mr. Andrew Smith To ask the Chancellor of the Exchequer what is his response to the Treasury and Civil Service Committee’s recommendations that Parliament should be provided with advance forecasts in the autumn to set beside expenditure decisions.

Mr. Major [holding answer 26 October 1988]: The Government’s response to the Treasury and Civil Service Select Committee’s recommendations was published on 25 October by the Committee in its fourth special report (House of Commons paper 675).

Below is the text of Mr Major’s written Parliamentary Answer on Balance of Trade on 27th October 1988.

Mr. Barry Jones To ask the Chancellor of the Exchequer if he will call a conference of Government, the Trades Union Congress and the Confederation of British Industry to discuss the implications for the British economy of the adverse balance of trade.

Mr. Major No.