THIS DOCUMENT IS THE P R O P E R T Y OF HER BRITANNIC MA J E S T Y ' S GOVERNMENT C P ( 7 3 ) 108
COPY NO
22 October 1973
CABINET
P U B L I C E X P E N D I T U R E TO 1 9 7 7 - 7 8
M e m o r a n d u m b y the C h a n c e l l o r of the E x c h e q u e r
1.
When w e d i s c u s s e d our public expenditure p l a n s i n J u l y
(CM(73) 38th and 39th C o n c l u s i o n s ) the Chief S e c r e t a r y and I w e r e
i n v i t e d t o p u r s u e b i l a t e r a l d i s c u s s i o n s w i t h our c o l l e a g u e s w i t h the
o b j e c t of e n s u r i n g that the t o t a l s i n this y e a r ' s White P a p e r should not
e x c e e d those we published l a s t D e c e m b e r .
We h a v e now c o m p l e t e d
those d i s c u s s i o n s .
2.
If w e a r e to l e a v e o u r s e l v e s with r e a s o n a b l e r o o m for m a n o e u v r e
o v e r the c o m i n g y e a r , w e should n o w be taking d e c i s i o n s t o cut back on
the t o t a l s i n l a s t D e c e m b e r ' s White P a p e r .
This i s a v i e w w h i c h i s now
v e r y w i d e l y h e l d , and I a g r e e w i t h i t .
It i s r e i n f o r c e d b y the i n e v i t a b l e
c o n s e q u e n c e s of l a s t w e e k ' s c h a n g e s i n the p r i c e of o i l f o r , h o w e v e r that
s i t u a t i o n now d e v e l o p s , w h a t h a s a l r e a d y taken p l a c e m u s t i m p l y a
s e r i o u s l o s s of r e a l i n c o m e for t h i s country, and a r e d u c e d c a p a c i t y to
m e e t all demands.
In r e s o u r c e t e r m s the i m p e r a t i v e n e e d i s to e n s u r e
that w e m a i n t a i n s u f f i c i e n t c a p a c i t y to i n c r e a s e e x p o r t s to d e a l with the
b a l a n c e of p a y m e n t s and to i n c r e a s e productive i n v e s t m e n t to p r o v i d e
for future g r o w t h ; and the s u c c e s s f u l handling of our p r i c e s and i n c o m e s
policy requires a reasonable minimum increase in privately-financed
consumption.
A t l e a s t i n the s h o r t t e r m t h e r e i s the q u e s t i o n of e x t e r n a l
c o n f i d e n c e i n s t e r l i n g (and the e x c h a n g e r a t e ) s o long a s w e a r e running
a substantial current deficit.
Our p o l i c i e s a r e t h e r e f o r e bound to b e
closely watched.
We cannot b y G o v e r n m e n t a l a c t i o n a l o n e halt inflation
or a c h i e v e s a t i s f a c t o r y g r o w t h .
But we c a n and m u s t c o n t r o l public
sector spending.
3.
D e s p i t e m y v i e w that w e should now be taking d e c i s i o n s to cut
back on the t o t a l s i n l a s t D e c e m b e r ' s White P a p e r , I r e c o g n i s e the v e r y
gj?63t d i f f i c u l t i e s i n v o l v e d i n s u c h a c o u r s e , and for that r e a s o n I d o not
p r o p o s e i t . What d o e s c o n c e r n m e i s the a p p r o a c h that w a s e x p r e s s e d i n
Cabinet, during our c o n s i d e r a t i o n of the Stage 3 p a c k a g e , that i t m i g h t
not e v e n b e n e c e s s a r y t o e n s u r e that the y e a r l y t o t a l s i n t h i s y e a r ' s
White P a p e r do not e x c e e d t h o s e w e p u b l i s h e d l a s t y e a r .
1
4.
S u c h an a p p r o a c h i n m y v i e w i g n o r e s the r e a l i t i e s of our e c o n o m i c
p o s i t i o n and of e x t e r n a l c o n f i d e n c e , and I a m a f r a i d that I c o u l d not a c c e p t
it.
B e c a u s e i t m a y take s o m e t i m e to s e t t l e the d e t a i l e d s a v i n g s
i n v o l v e d , I m u s t a s k m y c o l l e a g u e s for a d e c i s i o n , w h i c h c a n if n e c e s s a r y
b e r e f l e c t e d in public s t a t e m e n t s about the e c o n o m y during this v e r y
c r i t i c a l p h a s e , that the y e a r l y t o t a l s i n this D e c e m b e r s White P a p e r
w i l l not e x c e e d , i n r e a l t e r m s , t h o s e w e published l a s t y e a r ,
J
5.
T h i s y e a r s P u b l i c E x p e n d i t u r e S u r v e y r e p o r t , t o g e t h e r with m a j o r
s u b s e q u e n t c h a n g e s , s h o w s l e v e l s of e x p e n d i t u r e c o n s i d e r a b l y h i g h e r than
t h o s e published for the s a m e y e a r s i n l a s t D e c e m b e r ^ White P a p e r ,
T o d o no m o r e than get b a c k t o the l e v e l s s h o w n i n that White P a p e r
w i l l r e q u i r e s a v i n g s of about £ 5 7 0 m i l l i o n for 1 9 7 5 - 7 6 , and about
£ 7 0 0 m i l l i o n for 1 9 7 6 - 7 7 (there i s a n e x c e s s of about £ 3 2 0 m i l l i o n for
1 9 7 4 - 7 5 a l s o , but this would b e r e m o v e d b y a l l o w i n g two s e t s of
p o l i c i e s t o take e f f e c t i n that y e a r without o f f s e t s : f i r s t , t h o s e b y w h i c h
w e h a v e r e l i e v e d the building i n d u s t r y o v e r l o a d i n 1 9 7 3 - 7 4 ; and s e c o n d l y
c e r t a i n of t h o s e b y w h i c h m y p r o p o s a l s would m o d e r a t e e x p e n d i t u r e i n
the l a t e r y e a r s ) .
T h i s , with a r e a s o n a b l e p r o g r e s s i o n t o 1 9 7 7 - 7 8 , h a s
b e e n the o b j e c t i v e w h i c h the Chief S e c r e t a r y and I h a v e p u r s u e d in our
bilateral discussions.
T h e y do not a l l o w for the outstanding additional
bids which some Ministers have made.
T o the e x t e n t that any of t h o s e
b i d s s r e a g r e e d , further offsetting s a v i n g s would b e n e c e s s a r y .
Several
m a j o r i t e m s w h e r e p o l i c y i s not y e t finally d e c i d e d a r e fo.ound to
m a t e r i a l i s e in any c a s e a s c h a r g e s on the Contingency R ^ e r v e ; but
d e s p i t e this I p r o p o s e to r e d u c e the r e s e r v e b e l o w the l e v e l p r o v i d e d
i n the P E S C R e p o r t .
6.
M y p r o p o s a l s in the l i g h t of t h e s e d i s c u s s i o n s a r e shown in the
t a b l e s a t A n n e x 1.
T h e s e t a b l e s a l s o ahow how the t o t a l s for the
p r o g r a m m e s i n l a s t year's White P a p e r , a s r e c o s t e d for p r i c e c h a n g e s
now c o m p a r e both with the l a t e s t a g r e e d P E S C c o s t i n g s and w i t h the
t o t a l s a s they would be after taking a c c o u n t of m y p r o p o s a l s .
The broad
e f f e c t of the c h a n g e s I p r o p o s e a r e b r i e f l y i n d i c a t e d in the n o t e s to the
table.
In s o m e c a s e s I understand f r o m the b i l a t e r a l t a l k s that the
M i n i s t e r s c o n c e r n e d would be p r e p a r e d to e n d o r s e the s a v i n g s p r o p o s e d .
I r e c o g n i s e that m o s t p r o p o s a l s h a v e t h e i r d i f f i c u l t i e s , but I b e l i e v e that
t h i s p a t t e r n , s u b j e c t if n e c e s s a r y to m i n o r offsetting a d j u s t m e n t s , would
both a c h i e v e our m a i n o b j e c t i v e and would be d e f e n s i b l e .
7.
The table at A n n e x 2 b r i n g s t o g e t h e r the f i g u r e s for the p r o g r a m m e s
for the p e r i o d up to 1 9 7 7 - 7 8 , showing how they w o u l d i n c r e a s e if m y
p r o p o s a l s a r e adopted.
I should s t r e s s that I have e x c l u d e d f r o m the
p r o g r a m m e s t h e m s e l v e s a l l i t e m s w h i c h c a n l e g i t i m a t e l y be c o n s i d e r e d ,
at t h i s s t a g e , a s c l a i m s on the r e s e r v e , e v e n w h e r e it i s e v i d e n t that
those claims will shortly materialise.
2
8.
A s r e g a r d s d e f e n c e , m y p r o p o s a l s a r e that the S e c s - e t e r y of S t a t e
for D e f e n c e should f o r e g o h i s c l a i m s for additions to the S u r v e y f i g u r e s
(which a r e p r o v i s i o n a l for the l a s t two y e a r s ) and c o m e down b e l o w the
S u r v e y l e v e l by £ 5 0 m i l l i o n in 1 9 7 5 - 7 6 , £ 7 5 m i l l i o n i n 1 9 7 6 - 7 7 and
£ 1 0 0 m i l l i o n in 1 9 7 7 - 7 8 .
He h a s offered to e f f e c t a r e d u c t i o n of
£ 3 0 m i l l i o n b e l o w the S u r v e y l e v e l i n 1 9 7 5 - 7 6 , and to m a k e s a v i n g s on
h i s planned d e f e n c e e x p e n d i t u r e sufficient to e l i m i n a t e h i s additional
b i d s and c o m e down t o the S u r v e y l e v e l for the following two y e a r s ,
s u b j e c t to a r e s e r v a t i o n on one i t e m w h i c h could i n v o l v e a s u b s t a n t i a l
amount.
The figure for 1 9 7 7 - 7 8 would b e p r o v i s i o n a l pending
c o m p l e t i o n and c o n s i d e r a t i o n of joint s t u d i e s now i n hand on d e f e n c e
e x p e n d i t u r e i n the l o n g e r t e r m .
The d e t a i l s a r e s h o w n i n A n n e x 3,
i n c l u d i n g , on v a r i o u s b a s e s , the p r o p o r t i o n of G N P going to d e f e n c e .
9.
A s a t i s f a c t o r y o u t c o m e i s a l s o conditional on our r e s o l v i n g a
problem concerning those p r o g r a m m e s which involve current expenditure
of l o c a l a u t h o r i t i e s in E n g l a n d and W a l e s .
The m e a s u r e s w h i c h we
announced i n May r e q u i r e d r e d u c t i o n s of about £ 8 1 m i l l i o n (at 1973
p r i c e s ) i n t h e s e p r o g r a m m e s in 1 9 7 4 - 7 5 , and w e announced that the r a t e
s u p p o r t g r a n t n e g o t i a t i o n s this a u t u m n would p r o c e e d on the b a s i s that
these economies are being made.
T h e s e r e d u c t i o n s , along with other
a c c e p t e d c h a n g e s , a r e t a k e n into a c c o u n t in the S u r v e y R e p o r t and
Running T a l l y f i g u r e s .
B u t it a p p e a r s f r o m the f o r e c a s t s now put
f o r w a r d i n c o n n e c t i o n w i t h the r a t e support g r a n t n e g o t i a t i o n s that, s o
far f r o m ta?ung s t e p s to i m p l e m e n t our May d e c i s i o n s , l o c a l a u t h o r i t i e s
a r e planning to i n c r e a s e t h e i r 1 9 7 4 - 7 5 expenditure on the p r o g r a m m e s i n
question.
The e x c e s s e v e r the S u r v e y R e p o r t and Running T a l l y f i g u r e s
i s about £ 1 4 0 m i l l i o n (or about £ 6 6 m i l l i o n o v e r the Cmnd. 5178 l e v e l )
m a i n l y accounted for by e d u c a t i o n ( £ 6 3 m i l l i o n ) , p e r s o n a l s o c i a l
s e r v i c e s ( £ 4 1 m i l l i o n ) , r o a d s ( £ 2 0 m i l l i o n ) and m i s c e U a n e o u s l o c a l
s e r v i c e s ( £ 1 4 million).
10.
S o m e l i m i t e d part of this m a y be i n e v i t a b l e ; t h e r e i s , for i n s t a n c e ,
a s p e c i a l p r o b l e m o v e r h i g h e r s u b v e n t i o n s for c o n c e s s i o n a r y f a r e s
(about £ 1 7 m i l l i o n ) .
But w e cannot a c c e p t the r e m a i n d e r of the e x c e s s
for r a t e support grant u n l e s s w e a r e t o go back c o m p l e t e l y on what w e
said in May.
M o r e o v e r , u n l e s s the e x c e s s for 1 9 7 4 - 7 5 i s e l i m i n a t e d ,
i t w i l l e n t a i l c o n s e q u e n t i a l i n c r e a s e s i n the e s t i m a t e s for a l l the l a t e r
y e a r s , thus r e q u i r i n g n e w offsetting s a v i n g s .
I must ask therefore
that the M i n i s t e r s c o n c e r n e d should join now in taking a l l n e c e s s a r y s t e p s
to s e e that the spending p l a n s of the l o c a l a u t h o r i t i e s on the v a r i o u s
p r o g r a m m e s a r e brought i n t o l i n e with the p r o p o s a l s w h i c h I h a v e s e t out.
11.
I a l s o attach further t a b l e s a s f o l l o w s : A n n e x 4: Main i n c r e a s e s and d e c r e a s e s i n p r o g r a m m e s s i n c e
C m n d . 5178 w a s p u b l i s h e d showing that the £ 5 0 0 m i l l i o n
s a v i n g s w h i c h I announced Oxx 21 May h a v e b e e n m o r e than offset.
-
3
P-
' ­
A n n e x 5: The p r o p o s e d d i v i s i o n , for t h o s e p r o g r a m m e s
w h e r e it i s r e l e v a n t , of the s a v i n g s i n A n n e x 1 b e t w e e n
England, S c o t l a n d and W a l e s .
To avoid d e l a y i n getting
the White P a p e r p u b l i s h e d i t w i l l be i m p o r t a n t that w e should
s e t t l e the g e o g r a p h i c a l d i v i s i o n of the s a v i n g s on which w e
decide in these a r e a s .
Conclusions
12.
I a s k m y c o l l e a g u e s to a g r e e : ­
a.
that the y e a r l y t o t a l s i n this D e c e m b e r ' s "White
P a p e r should not e x c e e d , i n r e a l t e r m s , the c o r r e s p o n d i n g
t o t a l s in l a s t y e a r ' s White P a p e r , and that this d e c i s i o n
c a n , if n e c e s s a r y , b e r e f l e c t e d in public s t a t e m e n t s about
the e c o n o m y ;
b.
to m o d i f y the p r o v i s i o n for t h e i r s e r v i c e s up to
1 9 1 7 - 7 8 a s i n the t a b l e s a t t a c h e d ;
c.
that, s o far a s l o c a l a u t h o r i t y c u r r e n t e x p e n d i t u r e
i s c o n c e r n e d , they w i l l p r o c e e d on the b a s i s outlined i n
p a r a g r a p h 10 a b o v e .
A B
Treasury
22 O c t o b e r 1973
4
Table 1
Annex 1
£ million
1974-75
Cmnd
Crnnd
5178
19'
at.,
S u r vie972
y
5178
re­
valued
prices
1. D e f e n c e
2892
Budget
2, Other m i l i t a r y
defence
3 - Overseas aid
.
EEC a n d o t h e r
services
A
griculture
5*
overseas
6, R e s e a r c h
1'
3245
90
industries:
( 1 ) DTI-SDD i n d u s t r i e s
( i i ) Doe i n d u s t r i e s
( i i i ) Post Office
Less S h o r t f a l l
Survey
Survey
Report
and
running
tally
522
304
560
302
525^)
125 \
137
138
1654
(85)
1776
1785
(92)
(85)
1453
102
663
-100
1570
110
726
-100
1342
121
692
-100
1099
250
1265
280
1159
1737 . ­
1963
14.54
1004
1367 ;
prices
Ch/Ex's
Proposals
Savings
Revised
Totals
( b )
-12
( a
- 301
286
T r a d e , i n d u s t r y and
employment
(of which Concorde)
1973
3348 )
93
303
84
281
Councils
at
.
3336 .
93
303
\v,. .
: :
302
525
138
.
( d )
2
2
(b)
( b )
1763
(68)
(-17)
8. N a t i o n a l i s e d
h
9. R o a d s ( )
10, S u r f a c e T r a n s p o r t
i 1 . Housing
12. M i s c e l l .
Local
1325
S e r v i c e s ^ ) 1238
0
896
45
13- Law a n d O r d e r
14 ij A r t s
Education
etc^^
'
3585
53
4086
396
etc^ ^
3021
3366
17/. S o c i a l
security
4999
317
321
5392
3377
5642
327
' 321
IS,
Financial
administration
i 9 . Common s e r v i c e s
20. M i s c e l l a n e o u s s e r v i c e s
21 . N o r t h e r n I r e l a n d
22. A d d i t i o n a l
23.
reductions
preceding programmes:
( i ) Maplin
( i i ) Civil Service
manpower
Debt i n t e r e s t
24. Contingency
reserve
25. S h o r t f a l l
TOTAL
99
697
in
( e )
-10
1149
* 2 1 ^
( e )
4I7
1963
.26^0
985
52
406O
i6. Health
h
1342
121
692
-100
1341
978 .
52
( b )
-45
- 1 6 ^
40(5
3361 ;
-1.5
5629
321
( b
-6 )fe)
334
116
128
333
1 28
766 .
781
781
' IS
W:
-9
-9
:
2275
500
2451
. 500
2850
-200
-200
28429
3 i 650
200
S.tJ'\:
;
;.i-'*. ilE!'.;
2850
-200
-80
-100
120
-300
3 1969
-325
31644
:
Notes t o Table 1
( a )
Unlike t h e f i g u r e s for l a t e r y e a r s , t h i s i n c l u d e s p r o v i s i o n
f o r N o r t h e r n I r e l a n d and a d d i t i o n a l manpower.
(b)
These s a v i n g s * r e l a t e t o t h e i n t e r r u p t i o n i n t h e p l a c i n g of
c o n s t r u c t i o n c o n t r a c t s i n t h e t h i r d q u a r t e r of 1975-74-, and
a r e c a l c u l a t e d on t h e a s s u m p t i o n t h a t t h e v a l u e "of t h e work
f o r which c o n t r a c t s were h e l d ' u p i s p e r m a n e n t l y l o s t and n o t
s u b s e q u e n t l y , added t o t h e p l a n n e d programme for. l a t e r y e a r s .
1
( c )
T h i s i n c l u d e s £35 m i l l i o n on a c c o u n t of t h e Milk
T h i s assumes an i n c r e a s e i n t h e p r i c e of m i l k i n
I n p r a c t i c e i f no i n c r e a s e i s made i n t h e r e t a i l
t h e y e a r , t h e d e f i c i t w i l l be about £100 m i l l i o n
this.
- . Fund d e f i c i t .
October 197^-*
price during
higher than '
(d)
T h i s i n c l u d e s £175 m i l l i o n f o r compensation t o n a t i o n a l i s e d i n d u s t r y .t6 c o v e r c u r r e n t d e f i c i t s . ( e )
These f i g u r e s a r e t h e r e f l e c t i o n i n 197^-75 of t h e p r o p o s a l s f o r l a t e r y e a r s made i n t h e l i g h t of T r a n s p o r t P o l i c y Review. ( f )
I n c l u d e s n o t h i n g f o r t h e l o c a l l y - d e t e r m i n e d pool..
( g )
I n c l u d e s some minor r e d u c t i o n s r e l a t i n g t o o t h e r
programmes
.
civil 0
*Other t h a n ( i ) t h e Concorde element i n T r a d e , I n d u s t r y and
Employment,
( i i ) £7, m i l l i o n of t h e e n t r y i n E d u c a t i o n , e t c ^ ,
( i l l ) £ 2 m i l l i o n of the e n t r y i n Law and O r d e r .
^
w
j
w
i
A
i
a
r
t
w
w
j
m
o
M
^
H gix.*-*^c.
^SECRET)
and
(h)
Local
authority
current
expenditure
-
E n g l a n d and
Wales
-
-
­
.
-
The programmes shown i n t a b l e
t h e Survey Report
current
table
in col
Cmnd 5178
and Running T a l l y
expenditure
additions
1 for
as
(c)
in cols
have not
(a)
and
'
DES
authority,
below.
The
account
2,638.3
346.3-
341 . 8
609.8
DOE
(Misc)
583.0
DOE
(Roads)
349.3
13.2 .
in
Total
figures
to
government
in
the
H
above
of
the
continue
The f i g u r e s
reductions
in the
of
cost
the Government
in the determination
£80.9
of
other
-5.9
+14.2
603.9
586.5
332.8
14.0
+19.6
transfer
rate
of
of
has
services
have
from
b e e n made t o
the
by i n d i v i d u a l s
agreed
support
grant
second column i n c l u d e
million.
RET to t a k e
for
this
next
the effect
been
local
the w a t e r and sewerage
t o be met
has
4,621.0
t h a n f o r DOE(Misc)
No a d j u s t m e n t
t o be t r a n s f e r r e d
and
332.8
+142.5
the
ratepayers,
572.3
313.2
+41.0
4,478,5
DOE(Misc) f i g u r e s - s i n c e
will
2,701.0
4,554.5
table
1./ .74.
4-62.7 .
-10.0
take account
from
(d)
+0.9
+ 10.0
Reduction
prices
(c)
13.1
-10.0
-
Efficiency
Survey
'(b)
619.O
'
1973
2,653.7
Office
adjusted
for
Latest forecast for
Survey
Report
Rate Support Grant
and
negotiations
Running
Total
Excess
Tally
((b) -i(c))
over col (b)
(a)
DHSS
The
and
1.
Cmnd.5178
revalued
DE
(b)
local
been taken into
£m a t
Home
include
revalued
services
who
into
are
account
year.
o f t h e May
21st'
Table
2
1975-76
£ million
Cmnd
5178
a t 1972
Survey
prices
1
1'
Cmnd
5178
.
re­
valued
at
1973
Survey
Survey
Report
and
running
tally
prices
Ch/Ex's
'
Proposals
:
Savings
Revised!
Totals
3382
3015
101
3384
106
3432
108
-50
294
315
331
-15
316
336
359
493
122
530
406
135
135
1399
(54)
1506
(59)
1421
(70)
-24
(-19)
1397
(51)
1438
1553
1490
-10
1480
125
135
152
-
152
665
-100
723
-100
.713
-100
-5
7.08
-100
1 136
1309
1267
-94
247.
1285
277
I 682
383
I878
4-35
1 173
418
1249
1469
1442
Order
941
1054
1054
-15"
-14
53
4250
53
15. E d u c a t i o n e t c
1 6. H e a l t h e t c
45
3724
. 3121
3477
5094
316
5493
326
335
106
351
122
680
749 '
0
Defence
Budget
Other m i l i t a r y
Overseas
aid
EEC a n d o t h e r
services
I 5.
1 6.
defence
Agriculture
Research
overseas
etc
Councils
7. T r a d e ,
i n d u s t r y and
empioyment
(of which Concorde)
108
316
359
-10
396
135
8. N a t i o n a l i s e d
Insustries:
DTl-SDD i n d u s t r i e s
(i)
(ii)
DOE
industries
(iii)
Post
Office
Less
Shortfall
9. Roads
1 C\
1 w *
Surface
Transport
11 . Housing
12. M i s c e l l .
local
13. Lav/ a n d
14. A r t s
17. S o c i a l
services
security
IS.
Financial
I9.
Common
administration
services
20. M i s c e l l a n e o u s s e r v i c e s
21 . N o r t h e r n I r e l a n d
4259
3499
5816
-61
-7 V
-19
-24
326
368
.1817
.1427
1040
53
4188
3480
5792
326
368
130
130
779
779
22 . A d d i t i o n a l
reductions in
prededing programmes:.'
( i ) M a p i i n
, '
( i i ) C i v i l S e r v i c e
m a n p ovver
23. Debt
interest
Contingency
reserve
25. S h o r t f a l l
. TOTAL 2250
2424
523
-200
523
-200
28720
31982
-14
-14
-20
-20'
2750
300
-90
2750
210
-200
-100
-300
3255 V
-601
31950
Table
3
1976-77
£ million
Cmnd
5178
a t 1972
Survey
prices
1. D e f e n c e
3000
Budget
at
Cmnd
5 i7S
revalued
1973
Survey
Survey
Report
and
running
tally
prices
Ch/Ex's
:
Proposals
—
u
3368
3424
- 116
122
124
324
346
361
355
376
363
465126
500
3*99
-20
379
139
139
-2
137
1058
(7)
1154
(8)
1073
(23)
-6
1067
1442
1554
160
729
-100
1512
163
700
-100
-16
+ 10
-10
1367
260
1329
-138
1496
173
690
-100
1191
389
-i-45
1658
1885
1 / .84
-71
434
"1814
-20
1464
1094
56
-17
1077
4452
-88
-29
5611
3617
' 5961
4364
3588
-35
5926
319
380
319
380
-75
3349
(prov'1)
2. O t h e r m i l i t a r y
3 * Overseas aid
4 . EEC a n d 0 t h e r
services
defence
overseas
5* A g r i c u l t u r e e t c
6. R e s e a r c h C o u n c i l s
7. Trade,
i n d u s t r y and
employment
(of which Concorde)
M /
Savings
124
-25
.
336
363
8. N a t i o n a l i s e d
industries:
( 1 ) DTI-SDD i n d u s t r i e s
( i i ) DOE i n d u s t r i e s .
( i i i ) Post Office
Less s h o r t f a l l
9. Roads
10,
Transport
11 , H o u s i n g
local
13 . Law a n d
services
Order
14. A r t s
15. E d u c a t i o n
16. H e a l t h
I 7
.
672
- 100
1187
Surface
! 2. M i s c .
148
etc
etc
Social
security
!8 0 Financial
administration
231
1 267
1 298
1527
978
. 1095
47
55
4409
3586
3857
3220
5203
312
56
! 9 . Common s e r v i c e s
20. M i s c e l l a n e o u s s e r v i c e s
356
323
372
103
10 3
118.
126
126
12 6
21 . N o r t h e r n
68
6877
755
783
783
78 3
Ireland
22. A d d i t i o n a l r e d u c t i o n s in
p r e c e d i n g programmes: ­
( i ) Maplin
(ii) Civil Service
manpower
23.
Debt
interest
24.
Contingency
25.
Shortfall
TOTAL
reserve
-14
-14
-20 ­
-20
2225
502
2397
502"
2650
400
-100
300
-200
-200
-200
-100
-300
28879
32183
-
32883
2650
-741
32142
£ million
1977-73
Crnnd
5178
a t 1972
at
- Cmnd
9.
3424
Budget
Other m i l i t a r y
3. Overseas
defence
133
381
aid
EEC a n d o t h e r
services
5- A g r i c u l t u r e
6. Research
Survey
SurveyReport
and
running
tally
5178
reSurvey . valued
prices
1, D e f e n c e
1973
overseas
. "
etc
Councils
7. Trade,
i n d u s t r y and
employment
(of which Concorde) prices
Ch/Ex'3
Proposal^
Savings
Revised
Totals
-100
3324
-30
133
351
\
416,
400
-20
416
380
143
-4
139
97
9755
-21
95
9544
1577
185
676,
-100
1398
-21
. +10
-15
155
15566
-21 1
-100
I 187
^89
+ 60
449
1856.
-72
1784
1569
-20 ,
1549
1 120
(4)
8, N a t i o n a l i s e d
industries:
( i ) DTI-SDD i n d u s t r i e s
( i i ) DOE i n d u s t r i e s ( i i i ) P o s t OJffice
Less s h o r t f a l l
9.
Transport
Housing
13 , Law a n d
r ,
.
12. M i s c . l o c a l
1/
1 a
.
Roads
10, S u r f a c e
! !,.
services
Order
1137
61
Arts
15. E d u c a t i o n e t c 16. H e a l t h e t c
17. S o c i a l
.
-
security
iS,
Financial
19.
Common
administration
services
20, M i s c e l l a n e o u s
services
21 . N o r t h e r n I r e l a n d 22. A d d i t i o n a l r e d u c t i o n s
in
4641.
3743
- 6109
interest
24. Contingency
r*
reserve
Shortfall
TOTAL 60 .
-37
4541.
3706
-35
6074
319
410
319
410
130
130
301
801
-II
- preceding programmes:
( i ) Maplin ( i i ) C i v i l S e r v i c e
manpower
23. Debt
-17
-1
-100
661
-48
-48
-20
-20
2600
400
-200
-100
-300.
33673
-942.
2600
500
32731
EXPLANATORY NOTES ON PROPOSED SAVINGS
1,.
Defence Budget"
See p a r a g r a p h g of t h e main p a p e r and Annex 3*
2*
O v e r s e a s Aid
" ' . - ' *
The p r o p o s e d c u t s a r e i n my view c o m p a t i b l e with our
obligations.
- -----
-.
n
-197^-75
-
international
£million
1975-76
-15
1976-77
-25. ,
1977-78 .
-30
;
'
A f u r t h e r saving o n - a g r i c u l t u r a l , support a d d i t i o n a l to the
c o n t i n u i n g c o n s e q u e n c e s of t h e m e a s u r e s u n d e r t a k e n i n May s h o u l d
be p o s s i b l e from p r o d u c t i o n g r a n t s and s u b s i d i e s .
'
^
o
-
-10
-20
Eesearch. Councils .
-20
-. -
T h i s could be a c h i e v e d i f t h e S c i e n c e Budget grew a t 2 p e r c e n t a
y e a r i n s t e a d of a t 3pe3? c e n t
0
5.
Trade
and
The
following
for
Trade
changes
and
(i)
Industry
Selective
contingency
million
( i i )
and
have
to
introduced
to
the
subsidies
If
Public
large
to
after
1974-75
call
on
1977-78.
and
for
the
probable
This
£20
later
changes
reduces
will
-
million
be
for
Board i n
give
such
to
as
which would be
Without
taken l a t e r ,
potential
air­
\.
this
secured
limitation
Contingency Reserve.
these
it
follows:
-6
savings
be
and
assistance
a n d R&D, i n c l u d i n g
%
on the
1976-77
Reserve.
reductions
the
continuing
Decisions
and meanwhile
savings
in
it
the
-19
Industries
£175
to
16 a i r c r a f t .
fall
Tables
presentational
Paper.
compensation to
of
of
For
Coal
on space
-5
reflect
White
the
decided
R&D, g i v e
claims
-17
restraint
State
1977-78
-15
Industry.
Contingency
indicate
however,
Expenditure
made f o r
Forecasts
1976-77
-2
savings
k
-5
be p o s s i b l e
Nationalised
of
r e d u c e d by
expenditure.
National
later
production to
project,
this
is
1976-77
for
anticipation
made i n
the
on the
The t a b l e s
could be
not
is
and aerj-engine
from l i m i t i n g
on t h i s
to
Minor
I
there
it
a charge
Other.
Concorde.
in
The p o t e n t i a l
programme
Grants.
Coal
current
1977-78.
will
to
no p r o v i s i o n i i s
craft
million
1975-76
reasons
( i v )
Secretary
by:
Assistance
be
£25
limit
1974-75
will
this
been smoothed
figures
( i i i )
for
Development
years
the
Assistance.
reserve
1975-76
for
Regional
be
with the
Industry.
National
the
h a v e "been a g r e e d
special
the
in
assistance.
nationalised
1974-75;
a charge
on the
(SECRET) P r o v i s i o n has
industries
for
price
any f u r t h e r
compensation
contingency
reserve.
been
1^0
c
w
fx
NATIONALISED INDUSTRIES
( i ) The p r o p o s e d s a v i n g s on E l e c t r i c i t y , G a s , S t e e l , Airways
and A i r p o r t s c o u l d be a c h i e v e d by t i g h t e r e s t i m a t i n g , and
p r u n i n g .of l e s s e s s e n t i a l i n v e s t m e n t .
£ million"
.1974-7.5
1975-76
-10
1976-77 ' 1977-78 -16
-21
.
( i i ) P o s t s ,
The M i n i s t e r of P o s t s and T e l e c o m m u n i c a t i o n s
i s prepared t o accept the following reductions.
.
-
-5
-10
-15 ­
.(iii) B r i t i s h Railways.
The f o r e c a s t s now allow.£175-185
m i l l i o n a year for the B r i t i s h Rail d e f i c i t , implying a sub­
s t a n t i a l f u r t h e r c l a i m t o be met' from t h e c o n t i n g e n c y r e s e r v e .
of t h e p r o p o s e d s w i t c h from r o a d t o r a i l and from p r i v a t e t o
p u b l i c urban t r a n s p o r t .
(See ..also t h e n e x t two i t e m s v )
+10
+10
\ 7" Qojz&jlc
Major o f f s e t t i n g s a v i n g s on r o a d s
change i n t r a n s p o r t p o l i c y .
--10
-94
' -158 '
0
a s p a r t of t h e same
-211
8"
Surface T r a n s p o r t .
A d d i t i o n a l expenditure proposed f o r both
i n f r a s t r u c t u r e and f o r r e v e n u e s u p p o r t of u r b a n p u b l i c t r a n s p o r t ,
a s a f u r t h e r p a r t of t h e t r a n s p p r t p o l i c y p a c k a g e .
"
t
+21
+J5
4-45
+60
9o
Ilouoirig
*
-
-
The r u n n i n g t a l l y f i g u r e a r e f l e c t l a r g o e s t i m a t i n g i n c r e a s e s i n . - ,
- - s u b s i d i e s and e x p e n d i t u r e on i m p r o v e m e n t s , .
The p r o p o s e d : ^.V
- ' ' r e d u c t i o n s a r e made up a s f o l l o w s :
.
,'
\
V i
-
/ *:
:
' -
' . -
....
.
;
;
'
'
' '' -
- [Lending t o H o u s i n g
Associations
-
'
*
-
£
' ' - -V­
million
'". -19W7.5 " 1975-76* -1976-77
'. J .
-
:
^
;;
4977-78
.' . - * ^
.
'
r
-.
Reduce s t a n d a r d r a t e of improvement g r a n t She.first
of t h e s e p r o p o s a l s h a s b e e n c o n d i t i o n a l l y - a g r e e d b y t h e
i
Environment S e c r e t a r y , ,
.
.-
;
.
i ­
.
i
;
tOo
Miscellaneous Local
i
.! i ­
Services
A p r o p o s a l , t o r e d u c e t h e r a t e of g r o w t h i n e x p o n d i t u r o on w a t e r
"and- sewerage h a s boon a c c e p t e d ' i n p r i n c i p l e hy t h e Environment.:
!
-!" Secretary,
"
-
". . ..
-
.'. 1975-76
-15,
-
'
:
* ';
1976-77 .1977-78
" -20
-20
'.
:\ "­
:' .
.j
"'
]
:
r­
'
.
.
-I
The s a v i n g shown f o r 1974-75 would r e s u l t from a l l o w i n g t h e
' e f f e c t s of t h e i n t e r r u p t i o n of s t a r t s i n 1973-74. t o c a r r y t h r o u g h ,
'
'
\ . " - :
.
"
- i - '7: i
5
. . . ... ;
: 1974-75
- . -r
H
\V;!^,X''
E^-RE La^jOlid
Order;
.
.
£ million
1974-75
1975-76
1976-77
1977-7-3
More r e a l i s t i c f i g u r e s of p r o b a b l e p c l c e r e c r u i t m e n t would r e d u c e
t h e p r o v i s i o n made w i t h o u t i m p l y i n g any p o l i c y c h a n g e .
Cuts i n
b o t h t h e p r i s o n b u i l d i n g programme and i n c u r r e n t p r i s o n s e x p e n d - ­
i t u r e s h o u l d be p o s s i b l e g i v e n t h e l o w e r f o r e c a s t of t h e p r i s o n
population,
The t o t a l s a v i n g s shown above would a l l o w f o r an
i n c r e a s e of £2 m i l l i o n a y e a r . f o r t h e Urban Programme.
The n e t
s a v i n g s i n 1974-75 a r e t h o s e w h i c h would a r i s e i f t h e m e a s u r e s t o
r e l i v e t h e c o n s t r u c t i o n i n d u s t r y o v e r l o a d t h i s year, were l e f t t o
take t h e i r course without o f f s e t t i n g a d d i t i o n s later,; small savings
from t h e some s o u r c e would c o n t r i b u t e t o t h e f i g u r e s shown above
for l a t e r y e a r s . '
.
,.
-.
.;
5
12.
A r t s
.
­
' M o d i f i c a t i o n s c o u l d be made i n t h e n a t i o n a l museum b u i l d i n g p r o ­
5
gramme and i n t h o A r t s C o u n c i l s c u r r e n t e x p e n d i t u r e t o r e d u c e t h e
p r e s e n t r a t e of growth of 10 p e r
:1.3
t
Education e t c ,
.
cent:
-
The p r o p o s e d r e d u c t i o n s would i m p l y :
. .
( i ) r e d u c i n g c a p i t a l programmes: t h e f i g u r e s below i n c o r p o r a t e
. t h e c a r r y f o r w a r d of s a v i n g s t h a t would flow from t h e d e f e r ­
rnent of b u i l d i n g s t a r t s . i n 1975-74; f o r 1976-77 and 1977-73
t h e y i m p l y i n a d d i t i o n r e d u c i n g t h e improvement e l e m e n t i n
t h e b u i l d i n g programmes f o r p r i m a r y and s e c o n d a r y s c h o o l s ( n o t
a f f e c t i n g t h e p r o v i s i o n f o r b a s i c n e e d s ) , and s l o w i n g down t h e
programme f o r p o l y t e c h n i c s and o t h e r c o l l e g e s of f u r t h e r
education:
.
;
(ii)
level
. - V
on c u r r e n t
-
the
teachers
and
-21
expenditure,
cut
( e g by s l o w i n g
-38
of
down
the
continuing
£25 m i l l i o n
the
growth
for
net
- but
1974-75
introduction
of
- '-25 ,
'
of
a
the
in-service
expenditure
SECRET
in
at
^27
on
reduced
2 1 May p a c k a g e ­
training
leisure
for
f a c i l i t i e s , r e d u c i n g t h e r a t e of improvement i n
r a t i o s and i n n o n - t e a c h i n g c o s t s :
1974-75
- - ( i i i )
(now
(the
each
1975-76
-20
1976-77
-20 '
1977-76
-20
staff/pupil
. .
J
on s c h o o l m e a l s , d e c i d i n g t o i n c r e a s e t h e p r e s e n t c h a r g e
12p) try 1p and 2p a y e a r a l t e r n a t e l y from J a n u a r y 1975
f i r s t i n c r e a s e ) , Subsequent i n c r e a s e s t a k i n g e f f e c t i n
s u b s e q u e n t September;
-21
-33
-43
( i v ) on U n i v e r s i t i e s . h a l v i n g t h e s u p p l e m e n t a r y g r a n t s o t h e r ­
w i s e p a i d t o compensate them f o r t h e e r o s i o n of t h e i r q u i n ­
Z
q u e n n i a l r e c u r r e n t g r a n t s b y c o s t " i n c r e a s e s i n 1973--7 !- and
w i t h h o l d i n g a l l s u p p l e m e n t a t i o n of t h e equipment g r a n t s .
-9
o
it- *
RET
-10
-10
14.
Health e t c .
( i )
r e d u c i n g t h e growth r a t e of " h o s p i t a l c u r r e n t
from 55" V
q : c
expenditure
c e n t t o 3"?; p e r c e n t a y e a r :
-1975-76
-4
-
1976-77
-9
1977-73
-14
( i i ) sorae r e d u c t i o n i n r e c u r r e n t e x p e n d i t u r e on p e r s o n a l
social services:
,
-5
;
-5.
- 5,
( i i i ) sorae d e l a y i n c a p i t a l schemes ( c o n t i n u i n g s a v i n g s from
t h e s p r e a d i n g f o r w a r d of "building s t a r t s from 1975-74 would
count a g a i n s t these s a v i n g s ) :
.5
1974-75 -1975-76
(a) h o s p i t a l s :
. )
( b ) o t h e r h e a l t h o.nd (
personal social y
services
(
15*
Social
..
.
1976-77
1977-73
-10
-10
- ^
- 8
"-10
"
Security
S a v i n g s would i n v o l v e :
( i ) an e s t i m a t i n g r e d u c t i o n i n e x p e n d i t u r e on t h e
allowance:
.-8
' -19
-19
attendance
-19
( i i ) e n d i n g t h e payment of f l a t - r a t e unemployment b e n e f i t t o
suspended w o r k e r s i n t h e f i r s t week of a b s e n c e from work:
;.)
- 5 Ifliili fill
( i i i ) r e d u c i n g E a r n i n g s - R e l a t e d Supplement on t h e l o w e r e a r n i n
band from 233- p e r c e n t t o 30 p e r c e n t :
-11
-11
16. MA PL IN
The f i g u r e s assume t h e f o l l o w i n g r e d u c t i o n s as a r e s u l t of on
opening d a t e l a t e r t h a n ' 1 9 3 0 : '
- '
.
'
.
-
: -
MOD e x p e n d i t u r e ".
TOTAL -
£m ( 1 9 7 3 . s u r v e y p r i c e s )
197^-75 - -1975-76
DOE e x p e n d i t u r e
.,
(V. nil. MDA . New Town.'.
. P o r t s ) '.
DTI e x p e n d i t u r e
(Aviation)
'
.
- 8
-12
.
;
'
- - 1
- 9
1
-
1976-77
1977-78
- 9
,",
!\\ ' .
-31
- k
.
-17
- 2
- 1
-1V
-14
-48
ANNEX 2
TABLE SHOWING FIGURES AS THEY WOULD BE IE ALL CHANCELLORSPROPOSALS ACCEPTED
:
197374
Defence Budget
Other m i l i t a r y defence
Overseas a i d
EEC and o t h e r o v e r s e a s
services
Agriculture etc
Research C o u n c i l s
Trade, i n d u s t r y and
employment
Nationalised i n d u s t r i e s
Roads
Surface T r a n s p o r t
Housing
Kisc. l o c a l s e r v i c e s
1 ot.r
r\
C\-r*A o - p
Arts
Education e t c
Health e t c
Social Security
VP *i
o -n
n
n l
orlrvi-iv-\*i
o f
n o - l - i
Common s e r v i c e s
Misc. s e r v i c e s
Northern I r e l a n d
Addition a1 r e d u e t i ons
in p r e c e d i n g
programmes:
( i ) Maplin
( i i ) Civil Service
manpower
Debt i n t e r e s t
Contingency r e s e r v e ^
Shortfall
0
TOTAL
£ m i l l i o n a t 1973 Survey p r i c e s
j
Approx
Av. p e r
av, p e r - c e n t age .
centage increase in
i n c r e a s e c o s t terms
]
9
7
7
i n c o s t 1972-73 to
1975- 1976­
78
terms
1 9 7 6 - 7 7 , as
76
77
1973-74 published in
to
. l a s t Decembers
1 9 7 7 - 7 8 ­ White Paper
197475
)
3336^ 3382
3324
1.0
133
351
10.4
-2.4
12.6
5.5;
4.2
86
93
108
279
303
316
3349
124
336
302
359
396
365
379
416
.580
135
137
139
1397
2240
1067
2259
954
1173
1191
418
1817
1427
1040
434
1814
1464
53
4188
3480
5792
56
4364
3588
5926
326
368
- 130
319
779
294
613
'141
525
138 .
2012
1763
1875
1140
376
2055
1149
417
21 64
1963
1367^ ' 1341
978
949
58
52
3939 4015
3361
3269
5514
5629
b
)
.
1077
2312
1187
449
1784
1549
1120
60
4541
3706
6074
8.8'
*
-11 . 1
-4.7
-0.7
0,7
-15.l
*
(
a
4.7
1 .5-
)
( a )
-5.5
4.8 '
J ' J
4.5
-4.6
-4.2
-3.2
4.3
6.1
3.7
6.2
1 .6
5V1
5.1
4.7
5.0
4.8
2.4
* *
r\ vn
325
321
307
-333
128
781
128
760
-
-9
(already
)
(allocated )
2850
2950
'­
120
-400
-300
2750
31644
31950
31474
-14
-20
210
-500
806
5.4
130
1 .6
3.1
783
801
1 .9
0.1
-14
-48
- -20
2650
-20
2600
360
-3Q0
380
126
.
1 .3
319
410
290
-300
32142 -32731"
1.8^
-5.6
2
5
(a)
(a-) E x c l u d i n g i n v e s t m e n t
grants.
()))- S a v i n g s of £ 3 5 m i l l i o n i n t h e l o c a l l y - d e t e r m i n e d pool have been
allocated to t h i s item,
(c) The f i g u r e s a p p e a r i n g i n t h e 1973 White P a p e r on p u b l i c e x p e n d ­
i t u r e f o r t h e Contingency R e s e r v e would be t h e a g g r e g a t e s of two
u n p u b l i s h e d components, namely, t h e f i g u r e s i n t h i s l i n e p l u s
the e l e m e n t i n c l u d e d i n t h e S o c i a l S e c u r i t y programme f o r
u p r a t i n g s of b e n e f i t s , beyond c o m p e n s a t i o n f o r p r i c e i n c r e a s e s ,
thus:
'
*
. . .
;
,, .
­
-
'
1973-74 1974-75 1975-76
Not to be
(For s o c i a l
(security
(upratings
published
(
.
(For g e n e r a l
(purposes
To be p u b l i s h e d ' £ million
1976-77
1977-78
30
140
260
390
120
210
290
360
150
350
550
750
(d) I n c l u d e s p r o v i s i o n f o r N o r t h e r n I r e l a n d and a d d i t i o n a l " manpower, not
included in l a t e r y e a r s .
'
­
( -y S
- Defence Budget -. GNP C o m p a r i s o n s
v J
' .
(A )
.% G^P
1 9 7 2 - -73
3160
5,5
3160
1 9 7 3 - -7k
J 1 9 7 V -75
330U
5.7
3 3 GO.
32U5
5.1
- 3302
1 9 7 5 - -76
33.8U
5.2
0
0
3368
(provi­
sional)
5.1
. (E)
-(D)
Previous
M i n i s t r y of
Defence Bid .(rounded)
Chance11o r ' s
P r o p o s a l s (3)
% GNP
% GNP
£m
1 9 7 6 - -77
(c)
. (B)
Provision in
1 9 7 3 PESO
Report (2)
, Cmnd 5178
Revalued
19 / 3 Survey Prices
% GNP
- £m
,
Hi .
All figures
(2)
Based
(3)
Represents
exclude
5.5
. 3160
5.5
5.7.
5.2
3300
5.7
1 3281
3281
5.7
3320
5.2
3290
5.7
5.2
3290
5.2:
3U32
.5.3
3k85
3382
5.2
3402
5.2
3k2k
'5.h
5.1
3565
.5.4
3U2U
5.1
5.0
3660
5.4
3k2k
5.0
3U2U
(provi­
sional)
o n Cmnd 5 1 7 8 a d j u s t e d
for
(k)
Defence
subsequent
in provision
1975-76 ­
£m
% GNP
3160
provision f o r Northern I r e l a n d
reductions
.Lm
5.5
-
33U9
­
5.0
'
332U
kis
50
policy
and a d d i t i o n a l
changes.
i n 1 9 7 3 PESC R e p o r t
1976-77
75
Manpower.
of:
1977-78
100
e x p e n d i t u r e b y o t h e r E u r o p e a n c o u n t r i e s ( 1 9 7 2 ­ NATO d e f i n i t i o n )
*
­
% GNP
^
Prance
k .2
- ..
.
Germany
3.9
­
NATO E u r o p e a n a v e r a g e
U.3. ( i n c l u d i n g UK)
3 . 9 ( e x c l u d i n g UK)
.
1
316O
Notes:
(I)
Defence
Secretary s
Offer 5.5
(provi­
sional)
1 9 7 7 ­ -78
)
(firm)
(provi­
sional)
0 az&is
Annex 4
' Changes
and
the
The Command 5 1 7 8
The l a t e s t
between
i ,qt December's
present
position.
provision
position
£500 m i l l i o n
cuts
Running T a l l y
-
of
is
figures
Major
1973
of
the
1974-75*
revalued,
Survey Report
21 May)
£31,969
The m a i n c o m p o n e n t s
Cmnd 5178
-
for
a
s
(Cmnd,5178)
White Paper
n
i s £31,644
(which i n c o r p o r a t e d
subsequently
amended
by
million.
the
the
million.
difference
and t h e l a t e s t
of
-f-£325
position
are
million
between
the
:
Increases
Social
Security
Defence
Budget
Revenue
support
: 1973
uprating
4-252
( )
+I63
a
to
nationalised
industries
+2S5
+211.
Housing
Debt
Interest
' -
*399
+1310
Offset
by
,;
21 May r e d u c t i o n s
Contingency
Reserve
:
I n Cmnd 5178
500
In Survey Report
200
Agriculture,
Trade,
-528
Fisheries
Industry
Nationalised
-300
and F o r e s t r y
-42
and Employment
-46
Industries - capital
investment
-118
-1034
Other
-
(a)
Mainly
policy
, ^
'
and e s t i m a t i n g
changes (net),
"'
: Northern
-
Ireland
Purchasing
-
:
^
t 3 25
I
; recruiting
(Repayment)
Shoeburyness,
*
; abolition
S e r v i c e s Vote
;
and
of
AWTHEX 5 - ; ' ' C h a n c e l l o r ' s p r o p o s a l s f o r s e r v i c e s , w i t h i n the,
\ . ' r e s p o n s i b i l i t y f o r t h e S e c r e t a r i e s of S t a t e f o r S c o t l a n d and. Wales
t
I
£ million
//
TOTAL
IJationlised i n d u s t r i e s
.
England^
­
1975-76
-15
1976-77
1977-78
-16
-26
1974-75
1975-76
1976-77
1977-78
-10
-94
-15
-15
-25
Roads
Reusing
Scotland
-211
-10
-83
-125
-200
-61
-57
-138
'
-0.5
-1.
-1.5'.
­
-6
-8
-6
Wales
­
-;
-
-5
-5
-5
"
1975-76
1976-77
1977-78
'
Miscellaneous local
. -71
-72
-67
-67
-3
. -3 '
-3
-1
-1.5
-1.5
services
-26
197^-75
1975-76
1976-77
1977-78
-15
-20
-20
-25
-12.5
-17
" 7
1
-1 -
. -0.3
-1.5
-1.5
-1.5
-i
-0.3
-0.1
-.1
-2
. -..
-1 . 5
-1 . 5
Law and o r d e r
1-974-75
1975-76
1976-77
1977-78
-
Health
-U
.11
Education e t c .
:
-7
-6.7
-1
-144
­
-
-17
-16
-17
-15
-45
-71
-37
-62
-79
-89.5
-6.5
-6.5
-14.7
-1.3
-1
-3
-0.5
-1
-1
-2
-9.1
-20.1
-23.5
-25.5
-14.0
.- ­
197^-75
1975-76
1976-77
1977-78
-88
-100
-4.5
-6
-1.5
-2.5
-4.5
-4.5
etc
16"
1974-75
1975-76
1976-77
1977-78 .
!
.
)
-19
-29
-37
-17
-25 -31
-104
-93.4
TOTAL of above
'
1974-75
1975-76
1976-77
1977-78
-- .
.
-309
-399
-503
-280
-362
-462.5
" i n c l u d e s p r o p o s a l s f o r s e r v i c e s a d m i n i s t e r e d on a G r e a t B r i t a i n or
England and Wales b a s i s
-9.5
-15.0