Category: Chief Secretary (1987-1989)

  • Mr Major’s Written Parliamentary Answer on Output – 29 July 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Output on 29th July 1988.


    Mr. Austin Mitchell To ask the Chancellor of the Exchequer whether he will publish in the Official Report a table showing his estimate of the implied difference between growth of potential output per person-hour and the growth of actual output per person-hour between the two most recent cyclical United Kingdom peaks; and if he will include (a) a figure for the United Kingdom and (b) the rate of growth in manufacturing assumed by the International Monetary Fund and the Treasury, respectively.

    Mr. Major Information on potential output per person-hour is not available in the form requested by the hon. Member. The Financial Statement and Budget Report contains a forecast for manufacturing output growth.

  • Mr Major’s Written Parliamentary Answer on Productivity – 29 July 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Productivity on 29th July 1988.


    Mr. Austin Mitchell To ask the Chancellor of the Exchequer whether he will publish a table showing annual increases in productivity in the United States of America and the United Kingdom for manufacturing and the whole economy, since 1976-77, including figures for the latest period of 12 months.

    Mr. Major Data on United Kingdom productivity can be found in table 34 of Economic Trends, and in the annual supplement to Economic Trends (1988). The OECD “Historical Statistics 1960-86”, tables 3.7 and 3.10, provide data on United States productivity.

  • Mr Major’s Written Parliamentary Answer on Government Expenditure – 28 July 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Government Expenditure on 28th July 1988.


    Mr. Austin Mitchell To ask the Chancellor of the Exchequer whether he will publish in the Official Report a table showing for each year since 1978 central Government expenditure on goods and services as a percentage of gross domestic product, less the extraction of oil and gas.

    Mr. Major [holding answer 27 July 1988]: The available information is as follows:

    Central Government expenditure on goods and services as a percentage of GDP at market price, less extraction of mineral oil and natural gas

    Year | Percentage
    1978 | 13.0
    1979 | 13.0
    1980 | 14.3
    1981 | 14.7
    1982 | 14.9
    1983 | 15.2
    1984 | 15.1
    1985 | 14.8
    1986 | 14.1
    1987 | 13.6

    Source: Based on United Kingdom National Accounts Statistics.

  • Mr Major’s Written Parliamentary Answer on Public Expenditure – 28 July 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Public Expenditure on 28th July 1988.


    Mr. Worthington To ask the Chancellor of the Exchequer if he will publish in the Official Report a table for the years 1982-83 to 1990-91 bringing together on the same basis the analysis of charges against public expenditure by departmental programme, Official Report,columns 375-76, 25 May, an analysis of charges by functional composition consistent with table 2.7 of Cm. 288-I.

    Mr. Major My reply on 22 July explained that the information requested could be provided only at disproportionate cost.

  • Mr Major’s Written Parliamentary Answer on Social Security Expenditure – 28 July 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Social Security Expenditure on 28th July 1988.


    Mr. Grocott To ask the Chancellor of the Exchequer what proportion of total expenditure social security, health and personal social services combined constituted in each year from 1979 to date.

    Mr. Major The table shows, for the financial years 1979-80 to 1988-89, public expenditure (net of receipts) on social security, health and personal social services as a percentage of the public expenditure planning total, excluding privatisation proceeds, the adjustment made to bring the sum of individual estimated outturns in line with the Treasury’s view of the likely overall outturn (1987-88) only and the reserve (1988-89) only.

    Year | Percentages
    1979-80 | outturn 39.9
    1980-81 | outturn 41.2
    1981-82 | outturn 43.3
    1982-83 | outturn 44.5
    1983-84 | outturn 44.9
    1984-85 | outturn 44.7
    1985-86 | outturn 46.5
    1986-87 | outturn 47.4
    1987-88 | estimated outturn (1) 47.6
    1988-89 | plans 47.8

    Source: Table 5.11, The Government’s Expenditure Plans, 1988-89 to 1990-91, Cm. 288-I.
    (1) The figure for 1987–88 does not include the additions to health authority cash limits provided for in Spring Supplementary Estimates.

  • Mr Major’s Written Parliamentary Answer on Public Expenditure – 26 July 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Public Expenditure on 26th July 1988.


    Mr. Nicholas Baker To ask the Chancellor of the Exchequer whether he proposes to make changes to the definition of the public expenditure planning total.

    Mr. Major The Governments objective for public spending is that it should decline as a proportion of national income. This objective relates to the total spending of central and local government and is expressed in terms of general Government expenditure (excluding privatisation proceeds). The Government seek to achieve this objective by controlling expenditure within the targets for the public expenditure planning total, which are set for three years ahead in the public expenditure survey.

    Hitherto the planning total has included not only Government’s spending on their own programmes but also the total spending of local authorities. In a White Paper published today, “A New Public Expenditure Planning Total” Cm. 441, the Government propose that when the new arrangements for local government finance come into operation in England and Wales the coverage of the planning total should be changed. In future, it will include spending on their own programmes, grants paid to local authorities, the credit approvals they issue for local authority borrowing for capital expenditure, the payments to local authorities from the proceeds of the national non-domestic rate, and the external financing limits of public corporations. Thus the new planning total will include those elements for which central Government are responsible and exclude spending which local authorities determine and finance themselves.

    Redefining the planning total to include only the expenditure for which central Government are responsible will make it a more effective instrument for planning and control of central Government’s operations. In combination with the disciplines on local authority spending introduced by the reform of local government finance, it will help to achieve the Government’s wider spending objective, which will continue to be directed towards total Government expenditure. Distinguishing the spending for which central Government are responsible from that which results from local authorities’ decisions will also enhance local accountability, thereby reinforcing the changes brought about by the introduction of the community charge.

    One feature of the proposals is that plans for grants and credit approvals will be set out for three years ahead rather than one as at present. This will assist local authorities in their expenditure planning.

    It is proposed to bring the new planning total into operation from 1 April 1990, the date of introduction of the community charge in England and Wales. This means that the 1989 public expenditure survey, the results of which will be announced in the 1989 Autumn Statement, will be conducted on the new basis.

    These changes are designed to improve planning and control of public spending. They do not represent any dilution in the Governments determination to reduce the size of the public sector or to restrict total public spending, whether by central or local government.

  • Mr Major’s Written Parliamentary Answer on the Gross Domestic Product – 25 July 1988

    Below is the text of Mr Major’s written Parliamentary Answer on the Gross Domestic Product on 25th July 1988.


    Mr. Alan Williams To ask the Chancellor of the Exchequer what is his estimate of the gross domestic product per head in (a) the United Kingdom, (b) England, (c) Wales and (d) Scotland.

    Mr. Major I refer the hon. Member to the November 1987 issue of Economic Trends. The table on page 86 shows the latest estimates of regional gross domestic product per head in current prices and at factor costs. The provisional estimates for 1986 are (a) United Kingdom excluding the continental shelf region, £5,597; (b) England, £5,741; (c) Wales, £4,795; (d) Scotland, £5,234. Revised estimates for 1977-86 and provisional estimates for 1987 will be published in the November 1988 issue of Economic Trends.

  • Mr Major’s Written Parliamentary Answer on Net Overseas Assets – 22 July 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Net Overseas Assets on 22nd July 1988.


    Mr. Chris Smith To ask the Chancellor of the Exchequer if, further to his reply of 13 July, Official Report, column 198, to the hon. Member for Birmingham, Northfield (Mr. King) he will estimate the sterling value of the United Kingdom’s net overseas assets at (a) 30 June 1987 and (b) at the latest date for which figures are available.

    Mr. Major Estimates of the value of the United Kingdom’s net overseas assets are available only for the end of each year. The latest CSO Pink book (United Kingdom Balance of Payments), published in August 1987, included a figure for the end-1986 of £114.4 billion. The 1988–89 Financial Statement and Budget Report included a provisional estimate for end-1987 of some £90 billion.

  • Mr Major’s Written Parliamentary Answer on Public Expenditure – 22 July 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Public Expenditure on 22nd July 1988.


    Mr. Worthington To ask the Chancellor of the Exchequer if he will publish in the Official Report a table on the functional analysis of United Kingdom public expenditure, modelled on table 2.7 of Cm. 288-I, showing charges netted against each line for each of the years 1982-83 to 1990-91.

    Mr. Major I refer the hon. Member to the departmental breakdown of charges in respect of programme expenditure that I gave him on 27 May 1988, at columns 375-76. The detailed functional analysis requested could be provided only at disproportionate cost.

  • Mr Major’s Written Parliamentary Answer on Small Businesses – 21 July 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Small Businesses on 21st July 1988.


    Mr. David Shaw To ask the Chancellor of the Exchequer if he will make a statement on the achievements of his Department and his policies in helping small businesses over the last 12 months compared with the previous 12 months; and if he will publish the performance indicators by which his Department monitors those achievements and the statistical results of such monitoring.

    Mr. Major [holding answer 19 July 1988]: The Government’s economic policies are designed to maintain a vigorous economy in which business and enterprise can flourish. Among the specific measures helpful to small businesses introduced in the last Budget were:

    Small companies’ rate of corporation tax reduced to 25 per cent.
    Basic rate of income tax reduced to 25p and higher rates above 40 per cent. abolished (benefits unincorporated businesses).
    Capital gains rebased to 1982.
    Capital gains retirement relief increased.
    Inheritance tax threshold increased to £110,000 and four rates replaced by single rate of 40 per cent.
    Capital duty abolished.
    £0.5 million limit introduced on amount most companies can raise under business expansion scheme to target relief on smaller companies.
    Further improvements to employee share schemes.
    VAT registration threshold increased to £22,100, maximum permissible under EC law.
    Easing of VAT registration requirements.