Below is the text of Mr Major’s written Parliamentary Answer on Inner-City Programmes on 24th July 1987.
Mr. Gordon Brown Asked the Chancellor of the Exchequer if he will itemise all additional expenditure authorised on inner-city programmes for the financial year 1987-88.
Mr. Major I regret that it has not been possible to provide an answer before the summer recess. I shall, therefore, write to the hon. Member and place a copy of the letter in the Library.
Below is the text of Mr Major’s written Parliamentary Answer on Unit Costs on 24th July 1987.
Mr. Austin Mitchell Asked the Chancellor of the Exchequer whether he will publish in the Official Report his estimate of the percentage increase in unit labour costs for (a) manufacturing, (b) the production and extractive industries and (c) the rest of the economy in the latest 12 months for which figures are available, for each year since 1970, and for the decades ending in 1966 and 1973.
Mr. Major Figures are available for manufacturing industries and for the production industries (which includes the extractive industries) only from 1971 to 1985. The 1986 figures will be published in due course in the Department of Employment Gazette. No figures are compiled for the rest of the economy.
Unit labour costs percentage increase on previous year
Year | Manufacturing industries | Production industries
1971 | 8.2 | 7.5
1972 | 9.5 | 10.5
1973 | 5.9 | 5.4
1974 | 17.4 | 19.5
1975 | 37.2 | 36.6
1976 | 10.8 | 9.2
1977 | 10.8 | 7.7
1978 | 15.1 | 12.9
1979 | 17.9 | 13.7
1980 | 22.2 | 21.5
1981 | 9.0 | 7.2
1982 | 4.8 | 3.3
1983 | 0.2 | -0.9
1984 | 3.1 | 2.0
1985 | 4.2 | 4.6
Below is the text of Mr Major’s written Parliamentary Answer on Public Expenditure on 24th July 1987.
Mr. McFall Asked the Chancellor of the Exchequer if he will estimate the public spending planning total for 1987-88 and 1988-89.
Mr. Major The Government’s plans for public expenditure were published in the 1987 public expenditure White Paper (Cm. 56).
Below is the text of Mr Major’s written Parliamentary Answer on Property Services Agency on 23rd July 1987.
Dr. Twinn Asked the Chancellor of the Exchequer whether any changes are proposed in the financial and accounting responsibilities of the Property Services Agency and client departments for new civil works projects.
Mr. Major Under existing arrangements client Departments are responsible for defining their accommodation needs precisely, economically and in good time. PSA is responsible for deciding how best to meet these requirements – whether by using existing property, or by leasing or new construction. Where new construction is the agreed solution the capital cost of such projects (and the cost of the design resources associated with them) is generally met from the client Department’s public expenditure programme. But, with a few exceptions, expenditure on civil projects still falls on the PSA’s vote (Class XX. 19). Most Departments are required to use PSA exclusively to provide accommodation services.
From 1 April 1988 Departments will be required to meet, directly from their votes, the cost of major civil building projects which are funded from their public expenditure programmes. This will bring the treatment of such expenditure in the public expenditure survey and in estimates into line. From the same date Departments will be able to test the market, and to use agents other than the PSA for design and project management of new construction where it appears cost effective and in the interests of good management to do so. These arrangements will apply to projects estimated to cost £150,000 or more. The property repayment services arrangements will continue to govern the provision of leased accommodation, minor works and maintenance.
These changes are part of a continuing process which is designed to clarify the respective responsibilities of client and agent to ensure completion of projects to time and within budget. The introduction of payment will improve the incentive for the client Department to ensure, for example, that late and potentially expensive changes to specification are avoided. The introduction of competition, by untying Departments from PSA, will provide an opportunity for Departments to test other sources of supply as well as an incentive for further improvement of the efficiency of services provided by PSA.
Under the new payment arrangements Departments will remain accountable for the requirement; PSA will remain accountable for the services which it provides. Departments will not be required to second-guess PSA’s professional judgments. But the change in vote responsibilities will enable client Departments to discharge their role more effectively.
Under untying, Departments will not necessarily be expected to test the market from the outset or to use agents other than the PSA. The process is expected to be evolutionary for three reasons.
First, it will take time for Departments to acquire the necessary resources and skills; for some Departments, especially small Departments, or those with few building projects, it may not be economical for them to do so.
Secondly, Departments will need to satisfy the Treasury of their capacity to use alternative agencies.
Thirdly, it will be necessary to take into account the effects of changes in workload on PSA. Departments will therefore be expected to agree an advance programme of work with PSA.
PSA intends to move to a system of commercial accounting as soon as possible. When it does, PSA will be able to provide advance quotations on a comparable basis to those of outside agencies. In the interim it will be necessary for Departments to base their comparisons on the best estimates PSA can provide.
These arrangements will be reviewed in two years’ time.
The Government will take account of this reply in their response to the Select Committee on the Environment, whose report earlier this year on PSA recommended charging on a repayment basis and untying of Departments for some of the functions carried out by PSA.
Below is the text of Mr Major’s written Parliamentary Answer on Unemployment (Cost) on 20th July 1987.
Mr. Tony Banks Asked the Chancellor of the Exchequer what is the annual cost, in taxes forgone and national insurance, and in extra social security payments, of the number of unemployed people in London for the latest date available.
Mr. Major I regret that regional figures for benefit expenditure on the unemployed are not available. It is not possible to estimate the revenue forgone.
Below is the text of Mr Major’s written Parliamentary Answer on Small Businesses on 20th July 1987.
Mr. David Shaw Asked the Chancellor of the Exchequer if he will make a statement on the achievements of his Department in helping small businesses over the last three years; and if he will publish the performance indicators by which his Department monitors those achievements and the statistical results of such monitoring.
Mr. Major The Government’s economic policy is designed to maintain a vigorous economy in which business and enterprise can flourish. Specific measures helpful to small businesses have been introduced in each of the last three Budgets. These include:
1985 Budget
self employed benefit from continuing reduction in Class 2 NIC and tax relief on half Class 4 NIC;
NIC restructuring;
extension of business expansion scheme (BES);
reform of capital gains retirement relief, extension of indexation, relief for long term holdings;
VAT threshold increase in line with inflation, extension of bad debt relief;
abolition of development land tax;
unincorporated businesses share benefit of real increase in income tax thresholds.
1986 Budget
small companies’ corporation tax (CT) rate reduced to 29 per cent.;
unincorporated businesses benefit from basic rate cut to 29 per cent. and indexation of tax thresholds;
BES extended and targeting improved;
Inheritance tax exemption for lifetime gifts;
VAT registration and deregistration thresholds increased broadly in line with inflation;
Enterprise allowance scheme expanded;
Employee share schemes: improved access for unquoted family companies, employee controlled companies, worker co-operatives;
Loan guarantee scheme extended and premium halved.
1987 Budget
small companies’ CT rate reduced to 27 per cent.;
unincorporated businesses benefit from income tax basic rate cut to 27 per cent. and indexation of the tax threshold; package of measures to lighten VAT burden on small businesses including: cash and annual accounting for businesses with turnover up to £250,000; registration threshold increased to £21,300 and period in which 73 businesses obliged to register extended to 30 days, simpler schemes to he more widely available for small and medium sized retailers;
standstill in fuel duties and most vehicle excise duty rates; BES changes to reduce effect of investment bunching in last quarter of tax year;
small companies’ capital gains charge reduced to 27 per cent. with advance corporation tax offset against liability on gains;
ceiling for capital gains retirement relief increased to £125,000;
Inheritance tax (IHT) business relief increased from 30 per cent. to 51) per cent. for minority holdings over 25 per cent. in unquoted companies; IHT threshold increased; new simplified occupational pension schemes will help small employers set up own schemes.
The success of the Government’s policies to improve the climate for small businesses is indicated by the rate of net business startups which, on the basis of VAT registration, averaged around 500 per week between 1980 and 1985.
Below is the text of Mr Major’s written Parliamentary Answer on Inflation on 17th July 1987.
Mr. Galbraith Asked the Chancellor of the Exchequer what assumptions his Department has made about the rate of inflation for 1988, 1989 and 1990.
Mr. Major The Financial Statement and Budget Report published in March 1987 contains assumptions for inflation as measured by the GDP deflator for the financial years 1988-89 to 1990-91, together with forecasts for growth in the GDP deflator in 1987-88 and for the retail prices index up to the second quarter of 1988. These figures are presented as follows:
Inflation (percentage change on a year earlier)
Year | GDP deflator Forecast
1987-88 | 4.5
1988-89 | 4.0
1989-90 | 3.5
1990-91 | 3.0
RPI
1987 4th quarter | 4.0
1988 2nd quarter | 4.0
Below is the text of Mr Major’s written Parliamentary Answer on Departmental Staff on 16th July 1987.
Mr. John Townend Asked the Chancellor of the Exchequer what was the number of staff-in-post in central Government Departments at 1 April.
Mr. Major At 1 April 1987 there were 597,814 staff in post in central Government Departments. Of these, 507,460 were non-industrials and 90,354 were industrials.
Below is the text of Mr Major’s written Parliamentary Answer on Industrial Production on 9th July 1987.
Miss Emma Nicholson Asked the Chancellor of the Exchequer what is his latest estimate of the level of industrial production.
Mr. Major I refer my hon. Friend to the reply my hon. Friend the Economic Secretary gave earlier today to my hon. Friend the Member for Esher (Mr. Taylor).
Below is the text of Mr Major’s written Parliamentary Answer on Overseas Assets on 9th July 1987.
Mr. Quentin Davies Asked the Chancellor of the Exchequer if he will make a statement on the present level of net United Kingdom assets overseas.
Mr. Hannam Asked the Chancellor of the Exchequer if he will make a statement on the present level of net United Kingdom assets overseas.
Mr. Major Net United Kingdom overseas assets are estimated to have increased from about £80 billion at the end of 1985 to about £110 billion at the end of 1986. This is equivalent to 28 per cent. of GDP, the highest recorded level since the war.