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OOCUMENT IS T H E P R O P E R T Y O F H E R B R I T A N N I C M A J E S T Y ' S G O V E R N M E N T
C ( 7 5 ) 137
C O P Y NO
81
28 N o v e m b e r 1975
CABINET
PUBLIC EXPENDITURE TO 1979-80
M e m o r a n d u m b y t h e C h a n c e l l o r of t h e E x c h e q u e r
1.
A t o u r m e e t i n g o n 13 N o v e m b e r , w e a g r e e d t h a t a r e d u c t i o n i n p u b l i c
e x p e n d i t u r e of £ 3 , 7 5 0 m i l l i o n s h o u l d b e m a d e i n 1 9 7 8 - 7 9 .
The Chief
S e c r e t a r y , T r e a s u r y , w a s i n v i t e d to d i s c u s s b i l a t e r a l l y w i t h s p e n d i n g
M i n i s t e r s t h e c o n t r i b u t i o n s w h i c h w o u l d be n e e d e d f r o m t h e i r p r o g r a m m e s .
I w a s a l s o a s k e d to a r r a n g e for consultations with the T r a d e s Union
Congress (TUC).
Z
T h e o u t c o m e of t h e C h i e f S e c r e t a r y ^ d i s c u s s i o n s w i t h s p e n d i n g
Ministers i s s u m m a r i s e d in his report which is attached.
I will make an
oral r e p o r t on m y c o n s u l t a t i o n s with t h e T U C .
f
3.
T h e White Paper i s a l r e a d y o v e r d u e .
E v e n when we have taken
d e c i s i o n s on all p r o g r a m m e s , we have to t r a n s l a t e t h e s e d e c i s i o n s into a
d e t a i l e d W h i t e P a p e r of t h e u s u a l k i n d , w i t h c o m m e n t a r i e s w h i c h w i l l
explain and justify the difficult d e c i s i o n s w e h a v e had to t a k e
This
p r o c e s s , with the s u b s e q u e n t p r i n t i n g , C a b i n e t a p p r o v a l and p u b l i c a t i o n ,
takes about eight w e e k s .
Thus on the m o s t o p t i m i s t i c a s s u m p t i o n , the
full W h i t e P a p e r c a n n o t c o m e o u t u n t i l F e b r u a r y .
We m u s t t h e r e f o r e take
decisions on p r o g r a m m e s a s soon as p o s s i b l e .
a
4.
T h e Cabinet h a v e a l r e a d y a c c e p t e d the n e e d to r e d u c e e x p e n d i t u r e b y
£3f billion in 1978-79.
The bilateral d i s c u s s i o n s have produced agreed
s a v i n g s i n t h a t y e a r of £ 2 . 6 b i l l i o n .
So £1.15 billion further savings a r e
still to be found.
5.
T h e f o l l o w i n g s u m m a r y t a b l e p r e s e n t s t h e n a t u r e of t h e d e c i s i o n s
required in simple form.
It w i l l b e s e e n t h a t t h e d i s p u t e d i t e m s a n d o t h e r
options t o g e t h e r total over £ 2 . 3 b i l l i o n , or t w i c e the additional s a v i n g s
required.
T h e r e i s thus substantial s c o p e f o r c h o i c e a c c o r d i n g to the
priorities which Cabinet p r e f e r s .
SUMMARY
TABLE
£ m i l l i o n i n 1 9 7 8 - 7 9 a t 1975 S u r v e y P r i c e s
Agreed
Reduction
( T a b l e 1)
Disputed
Items
( T a b l e 2)
Other
Options
( T a b l e 3)
H e a l t h and p e r s o n a l s o c i a l
services
166.0
316.0
Social security-
270. 0
325.0
1,164. 5
414.6
623.0
588.9
4.0
124.0
Law and order
110.1
36.4
Northern Ireland
58. 0
Food subsidies
30. 0
A g r i c u l t u r e and f i s h e r i e s
14.8
Industry
88.4
Defence
100.0
Roads, transport,
housing,
e n v i r o n m e n t a l and c o n s u m e r
services
Education, libraries,
arts
s c i e n c e and
O v e r s e a s aid
Overseas
services
Other
Total(rounded)
100. 0
13.0
350.0
49.0
5.4
7.0
10.9
8.8
2,600
1,500
870
6.
In f i n d i n g t h e s e a d d i t i o n a l s a v i n g s f o r 1 9 7 8 - 7 9 , w e m u s t a l s o e n s u r e
that t h e s a v i n g s i n 1 9 7 7 - 7 8 a n d 1 9 7 9 - 8 0 a r e n o l e s s t h a n t h e t o t a l s i n d i c a t e d
i n t h e i l l u s t r a t i v e l i s t i n A n n e x B of C ( 7 5 ) 117.
7,
I therefore invite m y colleagues ­
i.
T o c o n f i r m t h e r e d u c t i o n s a l r e a d y a g r e e d ( T a b l e 1 of t h e
Chief S e c r e t a r y ' s report),
ii.
T o s e l e c t a s u f f i c i e n t n u m b e r of i t e m s f r o m T a b l e s 2 a n d 3 t o g e t h e r s o a s to produce the £1.15 b i l l i o n still needed in 1978-79, and to y i e l d t o t a l s a v i n g s i n 1977-78 and 1979-80 not l e s s than t h o s e i n d i c a t e d i n C ( 7 5 ) 117. D W
Treasury
Chambers
2 8 N o v e m b e r 1975
H
REPORT
THE
BY
THE
CHIEF
FOLLOWING
NOTES
DISCUSSIONS
WHICH
HAVE
WITH
BEEN
AGREED
TOGETHER
ELEMENTS
IN
THE
FURTHER
ITEMS
NOT
TO
SOME
THE
A)
HEALTH
POSITION
THE
SECRETARY
FOR
TOTAL
HOSPITAL
AND
OF
AND
1978/79
£255
HOMES),
IN
BE
ARE
. 2 .
THE
TABLE
THE
AS
ELEMENTS
IN
LISTS
2
TABLE
CABINET
TABLE
BROAD
IS
THE
BILATERA
LIST
DISPUTED.
THE
IS
THAT
EXPENDITURE
THAT
DOES
AND
WOULD
WHICH
MY
IN
SETS
3
AGREE
PARAGRAPH
5
FIGURING.
FOLLOWS.
SERVICES
SERVICES
(WHICH
FOOD
AGREED.
PROGRAMMES
OF
ILLUSTRATIVE
SUBSTITUTED.IF
POSITION
MEAN
LISTS
1
ITEMS
TABLE
SOCIAL
OUTCOME
TO
AT
THE
AGGREGATE
MEDICAL
2%
A
RISE
AND
NOT
REDUCED
PROVISION
YEAR
SHOULD
AT
ON
A
REDUCTIONS
TO
THE
STORES
I N
HOSPITALS
ENGLAND
FAMILY
FROM
MADE
YEAR
PERSONAL
APPLY
FOR
BE
ON
SOCIAL
UNDER
THE
PRACTITIONER
AND
£388
SOCIAL
MILLION
BY
MILLION.
SAVINGS
IN
WALES
£15
MILLION.
£51
MILLION
OF S T A T E .
I N
ON
WAS
WHICH WO\ILD
B)
SOCIAL
THE
SECRETARY
NET
1978/79,
SAVED
TO
BE
SAVINGS
FOR
I NSTEAD
ACCEPT
£20
REDUCED
MIJLLION
PROGRAMME
SERVICES
WILLING
HAVE
£26
HEALTH
TOTAL
IN
SIMILARLY
SCOTLAND
SOCIAL
MILLION
MINISTERS
WOULD
THE
THE
AND P E R S O N A L
£166
WOULD
DRUGS,
BE
CURRENT
COMMUNITY
TABLE
SUMMARISES
MAIN
1
FORMULA
SERVICE
THE
STATE S
THIS
SERVICES,
PAPER
PERSONAL
SERVICES.
IN
CUTS
THE
PREVIOUS
LIST
MIGHT
THE
ON
CAPITAL
AND
THE
ADDITIONAL
WHICH
OF
SUMMARISE
MINISTERS.
FROM
WITH
CHANCELLOR'S
2.
TABLES
ILLUSTRATIVE
OUT
OF T H E
AND
SPENDING
C(75)H7
MAKE
SECRETARY
OF
ARE
THE
OF
AN
MILLION
FORMULA
UNDER
BRITAIN
£462
THE
IN
CUTS
TO
THE
THEN
NONE
BY
OF
FORRRRULA
WOULD
MILLION.
INCREASE
IN
MILLION
£23
UNACCEPTABLE
SECURED
GREAT
FROM
SECRETO
FOR
HEAL
AMOUNT
OF
PRESCRIPTION
THE
CHARGES
1978/79.
SECURITY
OF
STATE
CONSIDERS
THAT
THE
ONLY
AREAS
FOR
TO
SECURING
savings
i n
t h e
acceptable
s o c i a l
woLild
b e
s e c u r i t y
programme
which
a r e
i n
p r i n c i p l e
­
1978/79
£
( l ) t o
c u r t a i l
s t u d e n t s '
Benefit
i n
student
g r a n t s
( 2 ) t o
revoke
l i m i t
r e t u r n
t h e
r i g h t s
f o r
minor
i n c r e a s e
i n
-was c a r r i e d
which
to
Supplementary
improvement
t h e
m i l l i o n
i n
e a r n i n g s
a g a i n s t
u s
b y
15
( n e t )
55
­
r u l e
t h e
Opposition
i f
-
enacted
w i t h
e f f e c t
1
from
1976
A p r i l
65
or
-
i f
enacted
(Colleagues
the
w i t h
a r e
(3) t o
hold
w i l l
£IO/16
(This
by
a
i s
p l a c e
was
s a v i n g
unannounced
i t
n o t
s e p a r a t e l y
f i t t e d
i n
t o
t h e
gross
c o u n t e r - i n f l a t i o n
p e n s i o n
i s
be
u p r a t i n g
taken
moderated
c a n
1977
April
­
l8
how
i n t o
t h e
programme)
1976
t h e
have
B i l l
1
from
c o n s i d e r i n g
n e c e s s a r y
l e g i s l a t i v e
e f f e c t
i n t r o d u c e d
which
programme
o n e
which
could
i n
i t
t h e
would
movement
e a r n i n g s ,
p o l i c y ,
i n
J u l y
b e
made
Survey
be
which
508
as
s i n c e
t h e
197^.
from
t h e
Report,
s e n s i b l e
b u t
t o
announc e ) .
But
the
of t h e
S e c r e t a r y
s a v i n g
of o f f s e t t i n g
vcsult
from
tlepartmental
i n
o f
(3)
a g a i n s t
adopting
group
on
S t a t e
i s
above.
t h e
not
p r e p a r e d
She w i s h e s
s a v i n g
such
p r o p o s i t i o n s
f i n a n c i a l
from
t o
a l s o
extra
t h e
p o v e r t y ,
seek
t o
t h e
keep
whole
open
e x p e n d i t u r e
report
which
i s
o f
t h e
t o
be
amount
t h e
as
o p t i o n
would
i n t e r ­
d i s c u s s e d
b y
the
appropriate
propositions,
prepared
t o
£200-£3O0
c)
however,
e n v i s a g e
c u t s
Among
a
understand
n e t
saving
h o u s i n g ,
S t a t e
t h e s e
f o r
Whatever
i s
t h a t
S e c r e t a r y
under
t h e
(3)
o f
further
t h e
w i t h
environmental
These
environmental
Environment
programmes.
and Wales,
o f
elsewhere.
of
on
Scotland
programme
I
t r a n s p o r t ,
The S e c r e t a r y
for
Committee.
decided
no
on
o f
more
t h o s e
S t a t e
i s
than
m i l l i o n .
Roads,
formula
Cabinet
amount
o p t i o n s ,
a
So
fur-ther
s e r v i c e s
£726
t o
t h e
have
i n
£2
and
common
s e r v i c e s
h a s
accepted
t h e
S e c r e t a r i e s
m i l l i o n
p r e f e r e n c e
from
t o
a l l
t h e
o f
t h e
S t a t e
l a t t e r ' s
f u r t h e r
o p t i o n s
m i l l i o n .
S e c r e t a r i e s
o f
S t a t e
accepted
t h e
following:
England
( o r
Roads,
c a r
transport
parks
90
-
3
60
12
k
-
10
-
50
-
k
l40(GB)
Rail
Housing
Rents
b u i l d i n g
Housing
s a l e s
Housing
-
p r i v a t e
s e c t o r
improvement­
36
grants
Environmental
Community
-
15(GB)
further
t h e
two
s a v i n g s
main
from
a r e a s
t h i s
f o r
group
o f
-3­
29
programmes
c o n s i d e r a t i o n
a r e
-
­
396
o f
3
7
5
r e s e a r c h
l a n d
If t h e t o t a l
Wales
a u t h o r i t y
a d m i n i s t r a t i o n
British
New h o u s e
and l o c a l
S c o t l a n d
GB)
i s
housing
t o
and
1^
b e
r a i s e d
r o a d s .
As r e g a r d s
considers
h o u s i n g ,
t h a t
bo s u b j e c t
to
the
any
the
t o t a l
t h i s
over
programme,
of S t a t e
he h a s
same
i s
also
again
of
in l o c a l
tax
30-'i0p
on
of
beyond
for
l o c a l
t h o s e
roads,
S c o t l a n d
are
Wales
t h a t
to
per
a l s o
we
would
r e g a r d s
to
Environment
that
c o n t i n u e
w i t h
l e v e l .
i n
r e a l
terms
t h e r e
were
conesponding
a l s o
l e n d i n g ,
S e c r e t a r y
beyond
1977/78
i n
opposes
be
c o n t r o l
t h o s e
and
the
a c t i o n
any
on
r e d u c t i o n
m u n i c i p a l i s a t i o n ,
h o u s i n g ,
has
no
r e n t s
not
should
The
week
He
i n
should
t h e r e
i n c r e a s e s
and
and
any
f u r t h e r
s a l e s
for
t h e
Environment
of
a c c e p t e d .
S e c r e t a r i e s
opposed
t h e
h o u s e b u i l d i n g
e s t i m a t e d
a u t h o r i t i e s '
he
new
argues
i n t e r e s t .
which
for
f u r t h e r
mortgage
the
S t a t e
for
i t s
u n l e s s
mortgage
a u t h o r i t i e s '
As r e g a r d s
State
(
He
whatevei-
1978/79)
i n
improvement
houses
mean
opposed
accepted
relief
for
would
of
p r o v i s i o n
r e d u c t i o n .
no l i m i t ;
t h i s
S e c r e t a r y
of
f u r t h e r
c o m p l e t i o n
S t a t e
r e d u c t i o n s .
of
the
M4
The
and
S e c r e t a r y
as
o f
t h e
agreed
t o
f i n d
of
h i g h e s t
priority.
d)
Education,
The S e c r e t a r y
formula
c u t s
provided
£3f
If,
of
of
S t a t e
£517
the
f o r
c u t s
on
and
Education
m i l l i o n
however,
t o t a l ,
S e c r e t a r y
f u r t h e r
on
a r t s
has
e d u c a t i o n
o t h e r
s a v i n g s
he
has
£9
and
programmes
of
S t a t e
for
£4
m i l l i o n
that
he
would
be
f i n d i n g
Secretary
of
S t a t e
o f £16
m i l l i o n .
o f
are
e x p r e s s e d
find
The
s c i e n c e
make
t h e
m i l l i o n
up
t h e
f u l l
on
the
r e s t
of
art
the
b i l l i o n .
up t h e
Ike
t h a t
l i b r a r i e s ,
the
firm
Scotland
formula
c u t s
s a v i n g s
f o r
sought
Wales
from
h i s
programme
i n
makin
o p p o s i t i o n .
r e g a r d s
on
h i s
of
£^7
i s
f i n d i n g
i t
as
i m p r a c t i c a b l e
e d u c a t i o n
programme,
to
so
m i l l i o n .
the
f u l l
formula
c u t s
e
)
Law
and
The H o m e
sought
order
S e c r e t a r y
to
meet
the p o l i c e
the s a m e
the
f o r c e s
time
much t i g h t e r
and
up
to
the
t h i s
w i l l
the l a i v
order
i s
a l l o w e d
to f i n d
£3^.9
made u p
as
he
m i l l i o n
for
away
i n c r e a s i n g
In
consequence
the
S c o t l a n d
from
now
the
an
on
e f f e c t
Even
the
S e c r e t a r y
f u l l
Home
formula
cut
when
w h i l e
i n
r e s t
only
one
new
has
f e l t
m a n p o w e r
(ii)
P o l i c e
equipment
(iii)
F i r e
s e r v i c e
and
m i l l i o n ,
6.3
c u r r e n t
expenditure
a u t h o r i t i e s
w i t h
(iv)
P r i s o n s
expenditure
on
(v)
P r i s o n
(vi)
P r o b a t i o n
The S e c r e t a r y
as
h i s
current
of
t h e
m i l l i o n
Lord
Chancellor
c u t s .
10.8
o v e r t i m e
2.4
6.0
3.2
S t a t e
net
for
urban
the
has
f o r
of
Scotland
the
s i m i l a r l y
formula
programme.
departmental
£5.7
formula
r a t e
w o r k s
m i l l i o n
o f
m i l l i o n
b u i l d i n g s
( b o r n e b y l o c a l
support
grant)
it
u n a b l e
6.2
P o l i c e
his p a r t
of
f o l l o w s :
(i)
£l-g-
so
most
the
£
find
at
on
£l46.5
o f
to
e s t a b l i s h m e n t
only
severe.
have
r e c r u i t s
e s t a b l i s h m e n t s ,
allowed
was
f o r
t u r n i n g
authorised
s t a r t e d ,
of
S t a t e
be
programmes
to
of
without
c r i t e r i a
c i r c u m s t a n c e s .
prison
c u t s
t h e i r
exceptional
and
Secretary
formula
making
that
the
cut,
The
r e s p o n s i b i l i t y
xirban
found,
programme
h i s
f u l l
i n
share
f e l t
i n c l u d i n g
Home
to
has
to
England
-
£0.4
S e c r e t a r y
seek
£3.2
u n a b l e
m i l l i o n
has
not
recover
and
-
t h e
The
of
f o r
regarded
from
V a l e s .
m i l l i o n
t o
t h e
c u t s
f)
Northern
I r e l a n d
Notwithstanding
throughout
Northern
in
the
g)
a
The S e c r e t a r y
as
1979/80
( e x c e p t
further
o p t i o n
she
The M i n i s t e r
i)
S t a t e
f u l l
m i l l i o n
has
s t a g e
f o r
the
amount
which
but
i f
would
agreed
i n
t h o s e
£100
o f
A g r i c u l t u r e
the
order,
e x p e n d i t u r e
S e c r e t a r y
o f
the
b a l a n c e s
of
S t a t e
formula
excess
f o r
c u t s ,
and
e x p e n d i t u r e
es
f i r s t
accept,
increases
h)
a
and
a d d i t i o n a l
y e a r s .
of
1978/79
could
£7
accommodate
law
found
f u r t h e r
siibsidi
to
on
has
p r e c e e d i n g
Food
need
p e r i o d
I r e l a n d
1978/79
in t h e
t h e
the
paid
c o n s i d e r
and
r e d u c t i o n
e l i m i n a t i o n
under
m i l l i o n
p r o g r e s s
a
i n
be
of
food
CAP).
She
3
Table
c o u l d
a
the
went
made
f u r t h e r
£30
of
m i l l i o n
s u b s i d i e s
by
s a i d
t h e
f u r t h e r
i n
t h a t
than
she
r e s t r a i n i n g
r e d u c t i o n
£50
of
i n
CAP
p r i c e
m i l l i o n .
F i s h e r i e s
has
found
t h e
f u l l
of
S t a t e
has
agreed
c u t s
o f
£l4.8
r e d u c t i o n s
i n
the
formula
m i l l i o n .
Industry
The S e c r e t a r y
investment
programme,
UK c o n t r i b u t i o n
to
i n d u s t r i a l
the
European
r e s e a r c h
Space
and
t e l e c o m m u n i c a t i o n s
development
Agency.
These
and
i n
t h e
£88.4
t o t a l
m i l l i o n
in 1978/79.
He h a s
a l s o
Enterprise
Treasury
1
(£lOOOm)
s
drawn
Board
over
f
or
£40m
all
the
on
f i g u r e s
contribution
plus
a t t e n t i o n
a
which
p e r i o d
R o l l s
NEB
1
s
no
of
Royce
o t h e r
the
in
p h a s i n g
spread
f i v e
h a l f
the
d e c i s i o n
n o t i o n a l l y
c o v e r i n g
for
to
y e a r s .
has
the
a c t i v i t i e s .
funds
y e t
been
s t a t u t o r y
A f t e r
e s t i m a t e d
1976/77,
o f
of
would
t h e
N a t i o n a l
reached.
cash
d e d u c t i n g
n e e d s
t h i s
f o r
p r o v i s i o n
an
B r i t i s h
l e a v e
The
NEB
Leyland
£l25m
.a
y e a r
The
Secretary
should
be
of
provided
estimated
t h e i r
aid,
the
for
over
B r i t i s h
needed
in
I see
at
for
terms
this
for
f o r
R o l l s
p e r i o d .
the
He
and
NEB's
f o r c e
of
to
satisfy
everybody,
or
answer,
I
would
c o v e r i n g
a l l
in
short
to
a
of
the
White
j)
Def enc e
The
i s s u e
Defence
as
the
of
the
year
had
1977/78,
^
Overseas
has
o f f e r e d
refused
reduction
of
NEB
£350
t o
r e c e n t l y
i n c l u d i n g
s e p a r a t e l y
£200
to
have
f a c t
i s
that
i t
i s
of
NEB
sum
l a u n c h i n g
from
them
to
the
m i l l i o n
p r o v i s i o n
a
y e a r
any
to
m i l l i o n
t h e
the
i s
c r e d i b i l i t y
so
far.
i n
1978/79
S e c r e t a r y
f u l l
cut.
f i n d
which
t h e
c i v i l
of
£60
the
s i t u a t i o n .
for
r e d u c t i o n s
£100
d i s c u s s i o n
m i l l i o n
m i l l i o n
m i l l i o n
formula
year:
d r a f t i n g
b i l a t e r a l
of
a
The
S t a t e
r e d u c t i o n s
£430
run
formula
In
s a v i n g s
of
and
c i v i l
i n
of
b e s t
m i l l i o n
p r e s e n t a t i o n .
Further
w i t h
f l a t
u n c e r t a i n t i e s
w i l l
the
£200
o v e r
p r a c t i c a b l e
which
So
c o m p l e t e l y
t o t a l
t o
b a s e d .
w e l l
the
1979/80,
to
correspond
i n
in
each
of
£120
i n
1979/80
m i l l i o n
would
c u t s .
Aid
and
of
any
of
the
whether
secure
and
a
not
e x p e n d i t u r e
soundly
p u b l i s h
w i l l i n g
m i l l i o n
r e d u c t i o n s
he
c o n v e n t i o n a l
i s
R e p r e s e n t a t i o n
£4-9
have
for
a c t i v i t i e s
1977/78
accept
r e a l i s t i c
of
u n d e r l i n e
o n l y
s e r v i c e s
to
to
l a r g e l y
asked
the
even
be
i d e n t i f i e d
needed
On O v e r s e a s
have
y e a r s
been
c o u l d
would
was
a
a
sum
f o r e c a s t s
c o n t r i b u t i o n
he
m i l l i o n ,
a c t i v i t i e s
But
r e s o l v e d
b e
defence
each
be
be
should
that
thus
Paper
to
he s a i d
in
adopt
company
t h a t
Royce
t h a t
p o l i c y .
produce
figures,
the
£350
at
R o l l s
t h i s .
b e l i e v e ,
c o n s i d e r s
Royce:
b e l i e v e s
o t h e r
Government
s t a g e
Industry
r e q u i r e m e n t s
Leyland
of
the
State
o n l y
part
i n
Overseas
y/a.
of
On
the
1978/79).
I n f o r m a t i o n
Overseas
formula
He
has
FCO
Aid,
c u t s
M i n i s t e r s
the
(which
indeed
M i n i s t e r
i n v o l v e
i n d i c a t e d
that
a
the
prospect
is
that
he w i l l
Programme i n o r d e r
involve b r o a d l y
account o f
of t h e s e
the
formula
were
savings
seeking
reach
a doubling
courses
alternative
to
be
by
of
cuts,
1980
further
t h e UN 0.7%
the existing
stands
adopted,
elsewhere.
increases
at
the Cabinet
target.
programme,
£45'lm i n
would
in
This
which,
1979/80*
need
the
to
If
find
Aid
would
taking
either
PUBLIC EXPENDITURE REDUCTIONS AGREED IN BILATERAL DISCUSSIONS
£ra 1975 S u r v e y p r i c e s
1976-77
A. Formula c u t s on c i v i l
O v e r s e a s a i d and o t h e r
services
1977-78
1978-79
1979-80
programmes
overseas
-
-
5-1
5.1
0.4
0.3
-
-
9-2
14.8
15.9
England
-
219.6
285.9
Scotland
-
157.3
16.9
26.4
36.O
13-5
. 5.8
20.8
14.6
30.2
114.4
12.0
3.6
114.4
3.6
114.4
12.0
3.6
79.0
15-0
8.0
246.0
14.0
220.0
27.0
18.0
27139.0
19.0
2.4
32.2
83.1
130.6
5-2
10.1
12.3
13.3
16.9
Overseas services
Military
(part)
aid
A g r i c u l t u r e f i s h e r i e s and food
A g r i c u l t u r e and
Roads a n d
forestry
transport
-
V/al e s
Great
Britain
24.6
Housing
England
Scotland
Wales
Other Environmental
12.0
Services
England ( i n c l u d i n g l a n d
drainage)
Scotland
Wales
16.0
0
Law a n d O r d e r
E n g l a n d and Wales
Scotland
(part)
(part)
Administration of
Justice
*
I n some c a s e s t h e c o n s e q u e n t i a l r e d u c t i o n s i n 1979-80 a r e s u b j e c t
further consideration.
to
ECIUCATION,
AND A R T S
LIBRARIES,
EDUCATION:
SCIENCE
ENGLAND
SCOTLAND
WALES
ARTS
H E A L T H AND P E R S O N A L
ENGLAND
(PART)
(PART)
2-HER P U B L I C
517.0
686.0
27.0
V7.0
9.0
16.0
59-5
21.0
1.1
8.9
-
105.0
133.0
178.0
19.0
25.0
36.0
6.0
8.0
12.0
5.8
8.8
11.9
28.1
46.6
58.5
35-0
58.0
1082.8
1675.0
SERVICES
(PART)
SCOTLAND
WALES
SOCIAL
287.0
SERVICES
FORMULA REDUCTIONS ( E X C E P T
R E G I S T R A T I O N OF E L E C T O R S )
ON
COMMON S E R V I C E S
FORMULA
REDUCTIONS
NORTHERN I R E L A N D
FORMULA
TOTAL
"POLICY
DEFENCE
PACKAGE
CUTS
"FORMULA"
ON PROGRAMMES
10^.4
2062.5
O P T I O N " CUTS I N C L U D I N G
INCLUDED I N ILLUSTRATIVE
DEFENCE
(PART)
AGRICULTURE,
FOOD
CUTS
FISHERIES
100.0
AND
100.0
30.0
70.0
FOOD
SUBSIDIES
NATIONALISED
100.0.­
INDUSTRIES
TELECOMMUNICATIONS
B R I T I S H P A I L INVESTMENT (AND
S U B S I D I E S WHICH F A L L I N ROADS
AND TRANSPORT P R O G R A M M E )
9.0
48.0
80.0
100.0
69.7
114.6
140.0
139.8
Housing
Subsidies:
60.0 ++
12.0
4.0
60.0'++
12.0
4.0
10.0
10.0
15.0
15.0
1.0
15.0
15.0
90.0
55.0
4o.o7
/9O.0
260.0
200.0
200.07
211.7
621.6
721.0
765.8
2.0
0.1
4.0
4.4
5.0
33^0
3.0
90.0
51.0
3.0
England
Scotland
Wales
New h o u s e b u i l d i n g
Other
Environmental
Community Land
Social
Services
(part)
Security
(part)
Remove o r r e s t r i c t
students'
entitlement to Supplementary
Benefit
Rescind
rule
relaxation
from A p r i l
Uprate
on
earnings
in
$0.0
basis
options
list
"Policy options" offered
included in i l l u s t r a t i v e
Trade,
industry
Industrial
Roads
and
and
+
included
but not
list
employment
research
International
1.0
1976*
forecasting
Total of agreed
in illustrative
C.
8.0
2.0
(Scotland)
and
development
space
transport
England
Wales
-t-t
The S e c r e t a r y
in p u b l i c
of
State
expenditure
has
in
accepted
1978-79
this
£3^
is
provided
that
the
3.0
total
is
in
are
Table
lower
end
of
range.
The
balance
2.
11 .
cut
sought
billion.
*
B a s e d o n EC v i e w t h a t t h i s s h o u l d g o a h e a d i f t h e n e c e s s a r y B i l l
into t h e l e g i s l a t i v e programme.
F i g u r e s are lower end of range.
Figures
2.7
of
the
illustrative
can be
package
fitted
item
£m 1 9 7 5 S u r v e y
1976-77
Other environmental
p r i c e0
1977-78
1978-79
1979-8C
services
-
-
5.0
-
2.0
2.0
2.0
36.0
50.0
50.0
-
2.0
3-0
3.0
England
-
29-0
36-0
42.5
Scotland
-/r
7.0
7.0
4.5
6.0
208.9
172.2
2604.9
3O00.3
Environmental
research
R e g i o n a l Water A u t h o r i t i e s and
v/ater s u p p l y and c o n s e r v a t i o n
(Wales)
Housing
S a l e s of l o c a l a u t h o r i t y
houses:
10.0
England
Wales
Improvement
grants:
.1.0,
V/ales
T o t a l of new
11.0
offers
TOTAL AGREED REDUCTIONS
327-1
1 2 .
2.5
2.5
112.1
1&16.5
ITEMS I N PREVIOUS
BY SPENDING
ILLUSTRATIVE L I S T
(ANNEX B :
C(75)H7)
MINISTERS
1976-77
A.
DISPUTED
"Formula"
Overseas
cuts
aid
Overseas
and
civil
other
Commonwealth
prices
1978-79
overseas
1979-80
23.0
49.0
49.0
7.9
10.6
1.4.5
0.2
0.3
0.3
32.3
34.9
30.0
-
0.3
1.5
3.4
-
-
4.0
2.5
255.0
333.0
services
-
services
Survey
1977-78
programmes
aid
Overseas
Law a n d
on
£in 1975
(part)
War G r a v e s
-
Commission
order
England
and Wales
(part)
Scotland
Education
Scotland
Health
(part)
and P e r s o n a l
Sodal
Services
(part)
106.0
England
Scotland
-­
V/ales
-
Total
"Policy
disputed
option"
formula
cuts
cuts
including
and
New b u s
Civil
grant
A v i a t i on
Community
has
35-0
6.0
15.0
. 19.0
185.9
396.3
486.7
120.0
350.0
430.0
15.0
10.0
9.6
6.7
transport
mm
land
2.0
Authority
Other Environmental
It
26.0­
defence
Defence
Roads
10.0
Services
20.0
(part)
been agreed
6.9
that
this
item
need
not
be
pursued
1976-77 HOUSING
REDUCTION I N HOUSE
BUILDING
APPROVALS
REDUCTION I N L A MORTGAGE L E N D I N G
M U N I C I P A L I S A T I O N A N D IMPROVEMENT
INVESTMENT
HEALTH A N D P E R S O N A L S O C I A L
INCREASED P R E S C R I P T I O N
SOCIAL S E C U R I T Y
50.0
124.0
124.0
123.0
246.0
246.0
22.0
20.0
19.0
268.0
308.0
319.0
17.0
17.0
SSRVICES
CHARGES.
(PART)
BALANCE OF U P R A T I N G ON F O R E C A S T I N G B A S I S
141.0
RESTRICT UNEMPLOYMENT B E N E F I T FOR
THOSE WITH S U B S T A N T I A L O C C U P A T I O N A L
PENSIONS
TOTAL D I S P U T E D
OPTIONS
TOTAL DISPUTED ITEMS
IT HAS B E E N A G R E E D
THAT T H I S
143.0
589.9
1109.6
1171.7
143.0
775.8
1505.9
1658.4
I T E M S H O U L D NOT B E
PURSUED
TABLE 3 Items n o t i n i l l u s t r a t i v e l i s t which m i g h t b e u s e d t o
make up t h e d e f i c i e n c y i n p u b l i c e x p e n d i t u r e s a v i n g s .
S a v i n g i n 1978-79
£m 1975 S u r v e y p r i c e
Programme
Overseas a i d a n d o t h e r o v e r s e a s
services
S t a n d s t i l l i n t h e a i d programme from 1976-77 ( i n a d d i t i o n t o i t e m s i n T a b l e 2).
Agriculture f i s h e r i e s and
7
forestry
Food s u b s i d i e s The o p t i o n a g r e e d i s i n t e n d e d t o
r e d u c e t h e food s u b s i d y programme by 1979-80 t o
c o v e r t h o s e s u b s i d i e s a t t r a c t i n g FEOGA money a s
w e l l a s a UK e x c h e q u e r c o n t r i b u t i o n .
This
a d d i t i o n a l o p t i o n v;ould a d v a n c e t h e rundown b y
100
one y e a r t o 1978-79.
Trade i n d u s t r y a n d employment
S p r e a d S c o t t i s h a n d Welsh Development Agency
e x p e n d i t u r e over 6 y e a r s i n s t e a d of 5 y e a r s .
.13
Roads a n d T r a n s p o r t
up t o 150
F u r t h e r r e d u c t i o n s i n e x p e n d i t u r e on r o a d s .
Housing
a.
b .
Subsidies
F u r t h e r r e n t i n c r e a s e s of a b o u t 3 p - 4 0 p . . i n r e a l t e r m s i n 1977-78 a n d i n 1978-79
on t o p o f - t h o s e - a l r e a d y a g r e e d .
Housebuilding
155
approvals
The S e c r e t a r i e s of S t a t e f o r t h e E n v i r o n m e n t ,
S c o t l a n d a n d Wales a r e a l r e a d y d i s p u t i n g t h e
p r o p o s a l i n Tab3e 2 t o r e d u c e h o u s e b u i l d i n g
a p p r o v a l s by 1 1 , 0 0 0 (£124m a y e a r ) . . But i f
a p p r o v a l s w e r e r e d u c e d by a f u r t h e r 1 6 , 0 0 0
a y e a r (making 2 7 , 0 0 0 i n a l l ) a n e x t r a
s a v i n g v/ould b e p o s s i b l e .
SECRET
.
176
TABLE 3
S a v i n g i n 1978-79
£ra 1975 S u r v e y p r i c
Housing
c.
(contd)
L o c a l A u t h o r i t y House S a l e s
The S e c r e t a r y o f S t a t e f o r
h a s o f f e r e d £50m ( i n c l u d e d
t h r o u g h i n c r e a s e d s a l e s of
f u r t h e r o p t i o n m i g h t be t o
as follows:
t h e Environment
i n T a b l e 1)
houses. A
increase this
100
-30
England
Scotland
Wales
Other E n v i r o n m e n t a l
7
Services
Environmental r e s e a r c h :
The S e c r e t a r y o f S t a t e
for E n v i r o n m e n t h a s o f f e r e d a £5 m i l l i o n
( i n c l u d e d i n T a b l e 1) s a v i n g b u t i t m i g h t b e
p o s s i b l e t o a c h i e v e a s a v i n g of £10m w i t h o u t
r e d u c i n g t h e s p e n d i n g l e v e l below t h a t f o r 1974-75.
­
5
Educat i o n
P r e c i s e p r o p o s a l s a r e n o t made f o r a n a d d i t i o n a l
s a v i n g of t h i s o r d e r .
But t h e r e c o u l d b e f o r
example a c o m b i n a t i o n of m e a s u r e s f o r G r e a t
B r i t a i n i n c l u d i n g a f u r t h e r s q u e e z e on n o n - t e a c h i n g
c o s t s a t a l l l e v e l s ; a s q u e e z e on s c h o o l b u i l d i n g
for b a s i c n e e d s , t e a c h e r t r a i n i n g and s t u d e n t
numbers; f u r t h e r i n c r e a s e s i n f e e s a n d i n s c h o o l
meal c h a r g e s ; and v a r i o u s s m a l l i t e m s s u c h a s
a d m i n i s t r a t i v e c o s t s of t h e B r i t i s h L i b r a r y .
TOTAL OTHER OPTIONS
867-'
SECRET
16..