https://cpes.org.uk/om/files/original/c622a57e553eec813672adfbc6bea21d.pdf a809d252fed5c85d1ef2b25ead372cbd Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Economic Policy Review Volume 2 Text A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text. Text Any textual data included in the document APPENDIX A PAST DATA AND PROJECTIONS FOR 1976-1980 The tables which follow provide annual accounts for the main topics discussed in this Review derived from the accounting system and model described more fully in Appendix B. The tables record historical data for 1963-75 based on the latest available official statistics, I as well as presenting the results of three projections for 1976-80 which illustrate possible outcomes under, respectively, existing arrangements, large-scale devaluation, and broadly based permanent restriction of imports (the two latter strategies being assumed to be implemented from mid-1976). The definitions of alternative projections are briefly described here, followed by an explanation of the conceptual basis of the accounts. Definitions of alternative projections for 1976-80 The assumptions made to derive alternative future projections can be divided into those which are common to each and those which are specific to the particular strategy illustrated. Common assumptions (a) Growth of world trade at an average rate of just over 9% a year 1975-80; world prices of manufactures rising 5·5% a year (slower at first); the world price of raw materials relative to manufactures rising slightly, and the world price of oil relative to manufactures remaining constant after 1976. (b) Growth of public expenditure as foreseen in this year's White Paper2. (c) Fixed tax rates (adjusted for inflation)3 other than taxes on consumption (used as the instrument of budgetary adjustment). (d) Balance-of-payments current account targets improving from an expected £( 1975) 2·4 billion deficit in 1976 to a surplus of£ ( 1975) I billion in 1980. The main differences between projections are in the specified targets and instruments. (i) Existing arrangements are assumed to mean a 3% per year gain in export cost competitiveness after 1976 via depreciation of sterling, while money wage settlements fall to 10% a year and the frequency of settlement is limited to annual bargains. The balance-ofpayments targets after 1976 have to be met by regulating growth of domestic demand through taxes on consumption. (ii) Devaluation is assumed to mean a large fall in the exchange rate in mid-1976, and subsequent depreciation, so as to provide a once-and-for-all maintained change in export cost competitiveness sufficient to reduce unemployment to 900,000 by 1980. Money 'The basic source is National income am/ expenditure, 1964-74. 2P~;b/ic expenditure to 1979-80. 3Except that personal allowances are not tully revalorised in 1976. 64 wage settlements are limited to 7·5% a year from 1977 onwards.4 The same balance-of-payments targets have to be met by regulation of domestic demand through taxes on consumption. (iii) Restriction of imports is assumed to mean direct limitation of imports of manufactures to fulfil the common balance-of-payments targets while taxes are adjusted to reduce unemployment to I ,050,000 in 1977, falling to 900,000 in 1980. For comparative purposes the same money wage settlements are assumed as under (i). The exchange rate is adjusted to maintain cost competitiveness at its 1975 leveLS Concepts used in the accounts The following notes correspond to the numbering of tables. I. Employment, output and national income These accounts show the main sources of total real national income analysed into receipts from the North Sea and abroad, the effects on national income of changes in the terms of trade, and the volume of domestic output together with associated changes in employment and unemployment. The employment series6 are converted into full-time male equivalents to allow for changes in part-time working and for variations in the number of women engaged in low-paid occupations. Unemployment is the annual average of UK wholly unemployed, excluding school leavers and students. Total domestic output here excludes North Sea production and is disaggregated into two parts -that corresponding to direct employment in public services and the output of the 'business sector'. (Note that the standard national accounts conventions impute a constant level of productivity to public service employment.) The volume of domestic output is here valued at 1975 market prices (i.e. including associated indirect taxes and subsidies). The 'terms-of-trade effect' reflects changes in the price of exports relative to 'imports' (including oil and gas from the North Sea) which alter the purchasingpower equivalent of income derived from domestic output. Income from the North Sea includes both government tax revenue and net profits due to UK companies, and (net) income from abroad represents the balance of profits, interest, dividends and transfers 4The reasons for a more stringent assumption about incomes policy for this projection are fully described in Chapter I. Its principal effect in the model is to reduce the magnitude of nominal sterling depreciation that would otherwise be required to achieve the required levels of competitiveness. 5Trade restrictions by other countries are assumed to reduce the level of UK exports (excluding fuels) by about 3% in each year from 1977 onwards below what would be expected in the absence of restrictions. 6The unadjusted employment series is based on the Census of Employment mid-year estimate. Appendix A received by the UK from overseas after deduction of on account of the net effect of indirect taxes and sub- corresponding items paid abroad (but excluding North sidies bearing mainly on consumption such as VAT Sea profits due to foreign oil companies). (previously, purchase tax and SET) and excise duties. Real national income is a measure of the purchasing power of total disposable money income of the public 4. Balance of payments and private sectors. This account is designed to show both the main items directly entering the balance-of-payments current 2. Disposable income and expenditure account (adjusted for inflation) and some of the main This account shows how total real national income factors contributing to the surplus or deficit. is shared between household grants (i.e. pensions, The constituents of the current account itself are benefits, grants to students, etc.), wages and salaries measured at 1975 values using the same deflator (the (after deduction of taxes and insurance contributions), deflator for total domestic expenditure) as is used for property income (after tax, inclusive of grants to the income and expenditure accounts in Table A2. businesses), and the public sector. The real income of Net income from abroad here differs from Table AI each type is shown in terms of the volume of goods it because the balance of payments is shown for the UK would buy - consumption goods in the case of house- as a whole (including the North Sea). Income from the hold grants and real wages, consumption and invest- North Sea is not shown as a separate item and North ment goods in the case of property income, and public Sea profits due to foreign companies must therefore be services and investment in the case of the public sector. deducted from net income from abroad. The terms-of- Property income is defined to include all net income trade index differs from that underlying the 'terms-of- of the private sector (after tax) other than household trade effect' in Table A I for the same reason. grants and wages and salaries. Its main constituents The exchange rate for sterling shown at the bottom (before tax) are trading profits, income from self- of the table is based on the official index of the employment, rents, net income from abroad, interest 'effective' exchange rate,9 and shows the value of a on the public debt and government grants to busines- trade-weighted basket of ten major currencies, per ses.? Dividends paid by companies to UK share- unit of sterling. holders and interest payments within the private sector The 'world terms of trade' series for raw materials are netted out. Note that receipts of rent,s dividends and oil are world export prices for these commodities and interest of employees are here included with relative to the world price of manufactured exports (all property income. based on UN series, measured in US dollars). An Expenditures shown in this account are rebased to increase in the world terms of trade for raw materials " 1975 market prices. or oil causes a deterioration in the UK terms of trade, because Britain is a net importer of raw materials and 3. Earnings, costs and prices oil and a net exporter of manufactures. The 'volume This account is based on series which are fully con- of world trade' series is based on an OECD volume sistent with national income and expenditure accounts index of world trade in goods and services. and therefore employs concepts slightly different from official wage and price indices. 5. Private sector accounts Wages and earnings are expressed as indices of This table shows the sources of private income, taxes average weekly (or annual) income per full-time male and transfers, disposable income and expenditure, all equivalent, thus normalising for changes in the demo- measured at current prices and expressed as a share of graphic composition of employment. money national income at market prices. The private Series for costs and prices relate to the 'business 'financial surplus' includes receipts or"capital grants, sector' and exclude public services and the North Sea. but is calculated before deduction of taxes on capital. Import costs thus include the cost of North Sea oil and gas as inputs to the business sector. Total costs include 6. Public sector accounts also private rents, rates and tariffs on imports, less This table is analogous to Table AS. It shows con- subsidies to public corporations. solidated public sector revenue and expenditure, some Business output prices are shown as the average for items being expressed on a net basis. In particular debt home sales by the business sector (including sales of interest is shown after deduction of dividends and loan imported goods). interest payable by the private sector to public sector Consumer prices differ from business output prices bodies. Public sector property income comprises gross trading profits of public corporations and other public enterprises, after stock appreciation, and rents. 7Property income also includes the residual error between compromise and income estimates of GDP: the discrepancy between compromise and expenditure estimates is allocated to private stockbuilding. 8Jncluding the imputed rent on owner-occupied houses. 9Described in Economic trends, June 1974. 65 Economic Policy Review Table A.l Employment, output and national income (a) historical series (£1975 billion) Public service output Business output Total domestic output Terms-of-trade effect Income from domestic output Income from North Sea Income from abroad Real national income 1963 1964 1965 11 ·1 11·2 11·4 65·5 69·8 72·1 76·6 81·0 83·4 2·0 1·7 1·9 78·6 82·7 85·4 0·0 0·0 0·0 0·7 0·6 0·6 79·3 83·3 86·0 (million adult male equivalents) Public service employment Business employment Total employment 2·48 I5·95 18·43 2·50 16·07 18·57 2·53 I6·11 18·65 (million persons) Total employment Unemployment 22·93 0·54 23·24 0·39 23·50 0·34 1966 1967 11·6 12·0 73·2 74·6 84·9 86·6 2·2 2·5 8n 89·1 0·0 0·0 0·4 0·3 87·5 89·5 2·59 I6·07 18·67 2·68 15·64 18·32 23·67 0·35 23·22 0·55 - Table A.l Employment, output and national income (b) under existing arrangements 1975 1976 1977 1978 1979 (£1975 billion) Public service output Business output 14·5 85·9 Total domestic output Terms-of-trade effect 100·4 0·0 Income from domestic output Income from North Sea Income from abroad 100·4 0·1 1-1 Real national income 101·6 (million adult male equivalents) Public service employment Business employment 3·23 14·16 Total employment 17·39 (million persons) Total employment Unemployment 22·66 0·93 14·7 89·3 104·1 0·3 104·4 0·4 1·0 105·8 3·28 13·98 17·25 22·44 1·12 14·8 90·4 105·2 -0·3 104·9 0·9 1·0 106·7 3·30 13-77 17·07 22·28 1·31 14·8 94·0 I08·8 - 0·9 107·9 1·3 1·1 110·2 3·30 13·70 17·00 22·31 1·44 14·9 97·6 112·5 - 1·6 110·9 1·9 1·2 114·0 3·32 13·67 16·99 22·42 1·53 66 1980 15·0 100·9 I 15·9 - 2·5 113·4 2·5 1·4 I 17·3 3·34 13·63 16·96 22·50 1·58 Appendix A 1968 1969 1970 1971 1972 1973 1974 1975 12·2 12·2 12·5 12·9 13·3 13-4 13·7 14·5 77·8 79·4 80·7 81·7 83·6 88·5 88·5 85·9 90·0 91·6 93·2 94·6 96·8 101·9 102·3 100·4 2·1 2·1 2·5 2·7 3·5 2:0 - 2·9 0·0 92·1 93·6 95·7 97·3 100·3 103·9 99·4 100·4 0·0 0·0 0·0 0·0 0·1 0·1 0·1 0·1 0·2 0·6 0·7 0·6 0·6 1·5 1·2 1·1 ~ 92·3 94·2 96·4 98·0 101·0 105·4 100·7 101·6 2·71 15·32 18·04 2·72 15·16 17·87 2·79 14·95 17·74 2·87 14·58 17·45 2·96 14·44 17·40 3·00 14·61 17·60 3·06 14·50 17·56 3·23 14·16 17·39 23·05 0·57 23·00 0·57 22·84 0·60 22·49 0·78 22·49 0·86 23·02 0·61 23·14 0·60 22·66 0·93 . . Table A.l Employment, output and national income (c) under devaluation 1975 1976 1977 1978 1979 1980 (£1975 billion) Public service output 14·5 14·7 14·7 14·6 14·6 14·7 ~ Business output 85·9 90·5 94·8 102·0 108·0 112·3 ~ Total domestic output 100·4 105·1 109·5 1.16·6 122·6 127·0 Terms-of-trade effect 0·0 - 1·2 - 3·7 - 3·9 - 4·1 - 4·4 Income from domestic output Income from North Sea Income from abroad 100·4 0·1 H 103·9 0·4 1·4 105·8 1·1 1·7 112·8 1·5 1·4 118·5 2·2 1·3 122·6 2·9 1·3 Real national income 101·6 105·8 108·6 115·7 122·0 126·9 (million adult male equivalents) Public service employment Business employment 3·23 14·16 3·27 14·04 3·28 14·02 3·25 14·19 3·26 14·36 3·27 14·42 Total employment 17·39 17·31 17·30 17·45 17·62 17·69 (million persons) Total employment Unemployment 22·66 0·93 22·53 1·06 22·65 1·09 23·02 1·01 23·39 0·94 23·62 0·90 67 Economic Policy Review Table A.l Employment, output and national income (d) under import restriction 1975 1976 1977 1978 1979 (£1975 billion) Public service output Business output 14·5 14·7 14·7 14·6 14·6 85·9 89·7 96·1 102·0 107·5 Total domestic output Terms-of-trade effect 100·4 0·0 104·4 0·6 110·7 - 0·2 116·6 - 0·4 122·2 - 0·7 Income from domestic output Income from North Sea Income from abroad 100·4 0·1 1-1 105·0 0·4 0·9 110·6 0·8 0·6 116·2 1·2 0·4 121·5 1·7 0·4 Real national income 101·6 106·2 112·0 117·8 123·5 (million adult male equivalents) Public service employment Business employment 3·23 14·16 3·28 13-99 3·27 14·07 3·25 14·21 3·26 14·34 Total employment 17·39 17·27 17·34 17·47 17·60 (million persons) Total employment Unemployment 22·66 0·93 22·47 1·10 22·72 1·05 23·04 1·00 23·37 0·95 1980 14·7 112·4 127·1 - 1·3 125·9 2·2 0·4 128·5 3·27 14·42 17·69 23·62 0·90 - Table A.l Disposable income and expenditure (a) historical series (£1975 billion) 1963 1964 1965 Consumers' expenditure Private fixed investment Private stockbuilding 49·0 50·6 51·8 7·5 8·7 9·0 0·4 1·6 1·3 Total private expenditure 56·9 60·9 62·1 Public current expenditure Public investment 16·8 17·0 17·5 5·2 6·3 6·5 Total public expenditure 22·1 23·3 23·9 Total domestic expenditure Current balance of payments 79·0 84·2 86·0 0·3 - 0·9 - 0·1 Real national income 79·3 83·3 86·0 Disposable wages and salaries Disposable household grants Disposable property income 37·8 39·4 40·0 4·7 4·7 5·3 17·6 19·0 19·4 Private disposable income Public sector disposable income 60·0 63·2 64·7 19·3 20·1 21·3 Real national income 79·3 83·3 86·0 1966 52·8 8·9 0·6 62·2 17·9 7·2 25·1 87·3 0·2 87·5 40·7 5·4 19·1 65·3 22·3 87·5 68 1967 54·1 8·9 0·1 63·2 18·8 8·2 27·0 90·2 -0·7 89·5 41·3 6·0 19·5 66·8 22·7 89·5 Appendix A ~ ~ 1968 1969 1970 1971 1972 1973 1974 1975 55·5 56·0 57·0 58·6 61·6 63·3 63·0 63·0 ~ 9·7 10·2 10·4 10·8 ll·5 12·6 11·9 11·4 0·7 1·0 0·8 - 0·7 0·0 1·8 0·5 - 2·4 ~ 65·9 67·2 68·2 68·7 73·1 77·7 75·4 72·0 ~ 19·0 18·6 19·0 19·6 20·2 20·6 21·2 22·6 8·0 7·4 7·8 7·9 7·4 8·3 8·6 8·8 27·0 26·1 26·8 27·5 27·7 28·9 29·8 31·3 92·9 93·3 95·0 96·1 100·8 106·6 105·2 103·3 - 0·6 0·9 1·4 1·8 0·2 - 1·2 - 4·5 - 1·7 92·3 94·2 96·4 98·0 101·0 105·4 100·7 101-6 41·3 41·5 42·8 43·8 46·0 47·4 48·5 47·9 6·5 6·6 6·8 6·9 7·7 7·7 8·1 9·0 20·8 20·6 19·9 21·4 23·6 26·5 21·5 22·6 68·6 68·7 69·5 72·1 77·2 81·6 78·1 79·5 23·8 25·5 26·9 25·9 23·7 23·8 22·6 22·2 92·3 94·2 96·4 98·0 101·0 105·4 100·7 101·6 69 Economic Policy Review Table A.2 Disposable income and expenditure (b) under existing arrangements (£1975 billion) 1975 1976 1977 1978 1979 Consumers' expenditure 63·0 65·1 63·4 (.4·8 66·7 Private fixed investment 11·4 11·9 13-0 14·4 14·9 Private stockbuilding - 2·4 -0·3 0·3 0·8 1·4 Total private expenditure 72·0 76·7 76·8 79·9 83·0 Public current expenditure 22·6 23·0 23·2 23·2 23·2 Public investment 8·8 8·5 8·0 7·7 7·7 Total public expenditure 31·3 31·5 31·2 30·9 31·0 Total domestic expenditure 103·3 Current balance of payments - 1·7 108·2 - 2·4 107·9 - 1·2 110·8 - 0·6 114·0 0·0 Real national income 101·6 105·8 106·7 110·2 114·0 Disposable wages and salaries 47·9 46·6 43·8 44·0 44·9 Disposable household grants 9·0 9·6 10·0 10·5 10·8 Disposable property income 22·6 26·4 26·1 27·4 29·0 Private disposable income 79·5 82·6 79·9 82·0 84·8 Public sector disposable income 22·2 23·2 26·8 28·2 29·1 Real national income 101·6 105·8 106·7 110·2 114·0 1980 68·0 15·5 1·4 84·9 23·4 8·0 31·5 116·3 1·0 117·3 45·5 11·0 30·2 86·7 30·6 117·3 · TaJ,le A.2 Disposable income and expenditure (c) under devaluation (£1975 billion) 1975 1976 1977 1978 1979 Consumers' expenditure 63·0 64·7 63·5 66·7 70·3 Private fixed investment 11·4 11·9 13·4 15·8 17·7 Private stockbuilding - 2·4 0·0 1·8 2·9 3·2 Total private expenditure 72·0 76·6 78·6 85·4 91·2 Public current expenditure 22·6 23·0 23·1 23·0 23·0 Public investment 8·8 8·6 8·1 7·9 7·9 Total public expenditure 31·3 31·6 31·2 30·9 30·9 Total domestic expenditure 103·3 Current balance of payments - 1·7 108·2 - 2·4 109·8 - 1·2 116·3 - 0·6 122·0 0·0 Real national income 101·6 105·8 108·6 115·7 122·0 Disposable wages and salaries 47·9 46·4 43·1 43·3 44·8 Disposable household grants 9·0 9·4 9·5 9·8 9·9 Disposable property income 22·6 27·0 29·9 34·5 36·8 Private disposable income 79·5 82·8 82·5 87·5 91·5 Public sector disposable income 22·2 23·0 26·1 28·2 30·5 Real national income 101·6 105·8 108·6 I 15·7 122·0 70 1980 73·3 19·0 2·3 94·6 23·1 8·1 31·2 125·9 1·0 126·9 46·4 10·2 37·6 94·2 32·7 126·9 Appendix A Table A.2 Disposable income and expenditure (d) under import restriction (£1975 billion) 1975 1976 1977 1978 1979 Consumers' expenditure 63·0 65·4 65·9 69·2 73·7 Private fixed investment 11·4 12·0 13·5 15·4 16·3 Private stockbuilding - 2·4 - 0·2 2·4 2·9 2·7 Total private expenditure 72·0 77·2 81·9 87·5 92·7 Public current expenditure 22·6 23·0 23·1 23·0 23·0 Public investment 8·8 8·5 8·2 7·9 7·8 Total public expenditure 31·3 31·5 31·3 30·9 30·8 Total domestic expenditure 103·3 Current balance of payments 108·6 - 2·4 113·2 -1·2 118·4 - 0·6 123·5 0·0 Real national income 101·6 106·2 112·0 117·8 123·5 Disposable wages and salaries 47·9 46·8 45·9 47·4 50·2 Disposable household grants 9·0 9·6 10·1 10·6 11·1 Disposable property income 22·6 26·5 28·3 30·0 31·4 Private disposable income Public sector disposable income Real national income 79·5 22·2 101·6 82·9 23·4 106·2 84·3 27·7 112·0 87·9 29·9 117·8 92·8 30·7 123·5 1980 76·8 17·0 2·4 96·3 23·1 8·1 31·2 127·5 1·0 128·5 52·4 11·5 32·4 96·3 32·2 128·5 . 71 Economic Policy Review Table A.3 Earnings, costs and prices (a) historical series (% increase over previous year) 1963 1964 1965 1966 Money wage settlements Real value of settlements 0·8 -1·3 8·0 5·9 - 0·8 4·6 0·2 - 5·9 Average money earnings before tax 5·3 7·6 7·6 Average disposable money earnings 5·7 7·0 5·3 Average real disposable earnings 3·8 3·5 1·2 6·9 5·7 1·6 Unit labour costs 0·9 2·9 3·7 Other domestic costs per unit output 4·2 5·4 6·5 Import costs per unit input 2·3 4·3 3·1 Full costs per unit sales 1·6 3·5 3·9 3·8 7-1 1·0 3·6 Business output prices Consumer prices 2·0 2·8 3·6 1·8 3·4 4-1 3·4 4·0 1967 8·0 4·5 6·0 5·7 3·3 1·8 5·0 - 0·9 1·6 1·7 2·3 - Table A.3 Earnings, costs and prices (b) under existing arrangements (% increase over previous year) 1975 1976 1977 1978 1979 1980 Money wage settlements Real value of settlements 35·9 8·4 13·0 - 7·8 11·0 - 7·6 10·0 - 2·8 10·0 - 0·3 10·D -0·5 Average money earnings before tax 27·3 18·9 13-8 12·4 12·2 12·3 Average disposable money earnings 21·6 14·6 13·8 12·4 12·2 12·2 Average real disposable earnings - 0·3 - 1·9 - 4·9 0·9 2·1 1·4 Unit labour costs 23·7 13-9 9·9 8·0 8·0 8·2 Other domestic costs per unit output 22·1 23·1 14·5 13-5 12·6 12·4 Import costs per unit input 10·4 16·5 16·8 15·1 14·3 14·7 Full costs per unit sales 19·5 15·7 12·5 11·0 10·9 11·2 Business output prices Consumer prices 23·2 16·8 13·4 11·5 11·0 11·2 22·0 16·8 19·7 11·3 9·9 10·6 72 1968 5·1 - 0·6 8·6 6·6 1·7 4·0 4·5 11·2 5·5 4·0 4·9 1969 4·1 - 2·1 7·8 6·6 1·5 4·2 7·6 2·2 4·2 3·8 5·1 1970 14·7 6·3 12·6 10·7 3·9 8·8 8·1 7·1 8·3 6·9 6·6 1971 12·3 3·8 12·6 12·8 4·2 7·8 10·3 3·9 7·2 9·7 8·3 1972 11·4 4·1 12·2 13·1 5·1 8·0 7·2 1·5 6·3 8·7 7·6 1973 11·5 0·9 13·9 13·0 1·9 9·8 12·2 21·1 12·7 11-3 10·9 Appendix A 1974 12·6 - 3·2 20·8 17·9 2·6 16·9 3·6 41·8 21·6 17·5 14·9 1975 35·9 8·4 27·3 21·6 - 0·3 23·7 22·1 10·4 I 9·5 23·2 22·0 Table A.3 Earnings, costs and prices (c) under devaluation (% increase over previous year) I975 1976 I977 1978 1979 Money wage settlements Real value of settlements 35·9 8·4 13-0 - 8·7 7·5 - 11·5 7·5 - 4·5 7·5 -0·3 Average money earnings before tax Average disposable money earnings Average real disposable earnings 27·3 21·6 - 0·3 19·3 15·3 - 2·6 12·4 13·3 -7-l 9·9 10·3 - 0·3 9·8 9·6 2·5 Unit labour costs 23·7 14·0 7·9 5·1 5·5 Other domestic costs per unit output 22·1 24·9 17·8 14·1 10·5 Import costs per unit input 10·4 27·0 30·5 14·4 9·2 Full costs per unit sales 19·5 18·9 16·0 9·9 Business output prices 23·2 19·1 16·9 11·6 Consumer prices 22·0 I8·4 21·9 10·7 8·0 8·6 7·0 I980 7·5 I ·0 9·6 9·3 3·1 5·6 9·7 8·3 7·6 7·8 6·0 73 Economic Policy Review Table A.3 Earnings, costs and prices (d) under import restriction (% increase over previous year) 1975 1976 1977 1978 1979 1980 Money wage settlements 35·9 13-0 11·0 10·0 10·0 10·0 Real value of settlements 8·4 - 7·6 - 6·2 -1·5 2·5 2·0 Average money earnings before tax 27·3 18·9 14·9 12·6 12·2 12·4 Average disposable money earnings 21·6 14·5 14·6 12·3 11·8 12·0 Average real disposable earnings -0·3 - 1·5 - 2·3 2·4 5·3 3·8 Unit labour costs 23·7 13·8 9·7 8·1 7·9 8·2 Other domestic costs per unit output 22·1 22·7 14·8 12·7 11·5 11·2 Import costs per unit input 10·4 14·0 14·8 11·8 10·7 11·3 Full costs per unit sales 19·5 14·9 11·5 9·6 9·1 9·4 / Business output prices 23·2 16·2 12·5 10·3 9·4 9·4 Consumer prices 22·0 16·3 17·2 9·7 6·2 7·9 Table A.4 Balance of payments (a) historical series 1963 1964 (Indices, 1970 = 100) Volume of exports of goods and services Volume of imports of food and materials Volume of imports of manufactures Total volume of imports of goods and services Terms of trade on all goods and services Terms of trade excluding fuels 68·0 87·7 50·4 71·4 99·2 101·8 70·9 91·4 61·0 78·0 97·1 99·2 (£1975 billion) Value of exports of goods and services Value of imports of goods and services Net goods and services Net income from abroad Current balance of payments 15·09 15·42 -0·34 0·68 0·34 15·39 16·83 -1·44 0·55 - 0·89 Net goods and services excluding fuels 0·51 - 0·57 (Indices, 1970 =I 00) Weighted sterling exchange rate Export cost competitiveness Volume of world trade World terms of trade for raw materials World terms of trade for oil 117·7 105·6 54·0 108·2 137·8 117·4 107·2 60·0 112·8 132·2 74 1965 74·2 91·5 61·7 78·7 98·2 101·0 15·78 16·44 -0·66 0·60 -0·06 0·35 117·6 107·5 64·0 109·1 123·3 1966 77·2 90·9 65·0 80·7 99·7 102·4 16·20 16·40 -0·20 0·42 0·23 0·87 117·6 106·8 69·0 104·4 111·2 1967 78·1 93·5 73·3 86·1 100·3 104·0 16·21 17·21 -1·00 0·33 - 0·67 0·30 114·7 106·6 73·0 103·3 119·0 Appendix A 1968 87·1 98·8 85·3 92·4 98·3 101·5 18·76 19·56 - 0·80 0·22 - 0·59 0·57 100·6 97·4 82·0 101·1 120·9 1969 95·2 97·4 92·0 95·1 98·3 99·3 19·95 19·57 0·38 0·55 0·93 1·39 101·0 99·2 91·0 101·1 109·4 1970 100·0 100·0 100·0 100·0 100·0 100·0 21·26 20·53 0·73 0·65 1-39 1·59 100·0 100·0 100·0 100·0 100·0 1971 107·0 99·1 109·9 104·8 100·6 102·1 21·87 20·56 1·31 0·51 1·81 2·51 99·8 105·4 107·0 98·1 116·5 1972 109·3 100·7 131·3 116·9 101·9 103·3 21·18 21·48 - 0·30 0·50 0·20 0·83 96·0 107·7 116·0 102·6 109·5 1973 121-8 104·8 159·5 132·8 95·3 97·2 24·47 27·06 -2·59 1·38 - 1·22 - 1·11 86·3 101·4 129·0 126·3 125·.5 1974 130·0 98·7 166·9 133·2 81·9 91·3 27·42 33·11 -5·69 1·16 - 4·53 - 1·32 83·0 94·6 138·0 130·8 283·4 1975 124·6 89·8 155·5 127·0 88·9 98·3 25·66 28·40 - 2·74 1·04 -1·71 0·52 75·1 92·8 132·0 107·4 251·4 75 Economic Policy Review Table A.4 Balance of payments (b) under existing arrangements 1975 1976 1977 (Indices, 1970 = 100) Volume of exports of goods and services Volume of imports of food and materials Volume of imports of manufactures Total volume of imports of goods and services Terms of trade on all goods and services Terms of trade excluding fuels 124·6 89·8 155·5 127·0 88·9 98·3 130·8 90·7 176·8 138·0 91·1 98·2 143·8 88·0 189·3 144·1 91·8 96·8 (£ 1975 billion) Value of exports of goods and services Value of imports of goods and services 25·66 28·40 27·19 30·40 29·52 31·11 Net goods and services Net income from abroad -2·74 1·04 - 3·21 0·82 -1·60 0·40 Current balanceof payments - 1·71 -2·40 -1·20 Net goods and services excluding fuels 0·52 -0·73 - 0·15 (Indices, 1970 = 100) Weighted sterling exchange rate Export cost competitiveness Volume of world trade World terms of trade for raw materials World terms of trade for oil 75·1 92·8 132·0 107·4 251·4 65·6 92·8 138·6 104·3 241·6 58·3 90.0 152·5 106·3 241·6 1978 162·3 ~.9·9 216·2 158·2 92·8 95·7 34·60 35·07 -0·47 -0·13 -0·60 -0·15 53·8 87·3 170·8 108·3 241·6 1979 180·6 91·8 244·3 172·9 93·6 94·5 39·88 39·40 0·49 -0·49 0·00 -0·45 50·8 84·7 187·8 110·3 241·6 1980 199·6 92·3 269·0 185·9 94·3 93·5 45·36 43·25 2·11 - 1·11 1·00 -0·28 47·8 8H 204·7 Il2·3 241·6 76 Appendix A Table A.4 Balance of payments (c) onder devaluation 1975 1976 1977 1978 1979 1980 (Indices, 1970 = I00) Volume of exports of goods 1- I and services 124·6 135·4 157·7 183·2 205·7 226·4 Vo1ume of imports of food and materials 89·8 92·0 93·0 98·3 101·2 101·4 Volume of imports of manufactures 155·5 175·5 193·5 234·0 272·8 305·3 Total volume of imports of goods and services 127·0 138·1 147·9 169·0 188·7 204·7 Terms of trade on all goods and services 88·9 87·7 85·4 88·0 89·8 91·5 Terms of trade excluding fuels 98·3 94·9 90·6 91·2 91·5 91·7 (£1975 billion) Value of exports of goods and services Value of imports of goods and services 25·66 28·40 29·11 32·69 35·61 37·75 43·89 44·45 50·66 49·94 56·82 54·22 Net goods and services Net income from abroad Current balance.of payments -2·74 1·04 - 1·71 - 3·57 1·18 -2·40 - 2·14 0·95 - 1·20 -0·56 -0·04 -0·60 0·71 -0·71 o-oo 2·60 - 1·60 1-QO Net goods and services excluding fuels 0·52 - 0·73 -0·05 0·33 0·25 0·55 (Indices, 1970= 100) Weighted sterling exchange rate Export cost competitiveness Volume of world trade World terms of trade for raw materials World terms of trade for oil 75·1 92·8 132-Q 107·4 251·4 58·3 84·1 138·6 104·3 241·6 45·6 74·0 152·5 106·3 241·6 43·3 74·0 170·8 108·3 241·6 43·1 74·0 187·8 110·3 241·6 43·2 74-Q 204·7 112·3 241·6 77 Economic Policy Review Table A.4 Balance of payments (d) under import restriction 1975 1976 1977 (Indices, 1970 = 100) Volume of exports of goods and services Volume of imports of food and materials Volume of imports of manufactures Total volume of imports of goods and services Terms of trade on all goods and services Terms of trade excluding fuels 124·6 89·8 155·5 127{) 88·9 98·3 127-6 91·0 170·2 135·4 91·8 99·0 135·8 94·7 160·9 134-9 92·0 97·7 (£1975 billion) Value of exports of goods and services Value of imports of goods and services 25·66 28·40 26·27 29·33 27·50 28·68 Net goods and services Net income from abroad - 2·74 1·04 - 3·06 0·67 -1-18 -0·01 Current balance of payments - 1·71 -2·40 -1·20 Net goods and services excluding fuels 0·52 -0·63 0·48 (Indices, 1970 = I 00) Weighted sterling exchange rate Export cost competitiveness Volume of world trade World terms of trade for raw materials World terms of trade for oil 75·1 92·8 132·0 107·4 251 ·4 67·9 95·6 138·6 104·3 241 ·6 62·8 95·6 152·5 106·3 241 ·6 1978 150·0 98·3 175·8 144·6 93·3 97·1 31·11 31·05 0·07 -0·66 -0·60 0·77 60·3 95·6 170·8 108·3 241 ·6 1979 162·8 100·2 190·9 154-Q 94·4 96·5 34·77 33·64 H3 -1-13 0·00 0·80 59·6 95·6 187·8 110·3 241·6 1980 175·1 101·6 198·6 160·1 95·2 95·7 38·02 35·26 2·76 -1·77 1·00 1·28 58·8 95·6 204·7 112·3 241·6 78 [ Appendix A ] · [ Page 79 ] Economic Policy Review Table A.S Private sector accounts (a) historical series(% of national income, at current prices) 1963 1964 1965 1966 Income from employment less Direct tax and insurance 59·5 - 8·8 59·2 - 9·0 59·3 - 10·1 59·8 -10·8 Disposable income from employment 50·7 50·2 49·2 49·0 1967 59·2 - 10·8 48·4 Disposable household grants 6·3 6·1 6·5 6·6 7·0 Gross trading income and rent Net income from abroad and North Sea Net interest Property income before tax Grants from public sector less Direct taxes Property income after taJt less Stock appreciation Disposable property income 24·1 1·3 3·2 28·6 0·9 - 5·9 23·6 -0·6 23·0 24·3 H 3·1 28·5 1·0 - 5·3 24·2 - 0·9 23·4 23·7 1·0 3·0 27·8 H - 5·1 23·8 -0·8 22·9 23·0 0·9 3·0 26·8 1·2 - 4·9 23·1 - 0·9 22·2 22·8 0·9 3·2 26·9 1·8 - 6·1 22·6 - 0·5 22·1 Total private disposable income less Expenditure on goods and services Private sector financial surplus less Taxes on capital Net acquisition of financial assets 79·9 -75·8 4·2 -1·0 3·1 79·6 -76·7 2·9 - 0·9 2·0 78·6 -75·5 3·1 -0·8 2·3 77·7 -74·1 3·6 - 0·8 2·8 77·5 -73·3 4·2 - 0·9 3·4 80 Appendix A 1968 58·5 - 11·5 46·9 7·4 23·4 0·9 3·3 27·5 2·3 - 5·9 24·0 - 1·3 22·7 77·0 -74·0 3·0 - 1·0 2·0 1969 58·1 - 12·0 46·1 7·4 22·3 1·3 3·1 26·7 2·5 - 5·8 23·4 - 1·5 21·8 75·3 -73·7 1·6 - 1·3 0·3 1970 59·2 - 13-0 46·2 7·4 22·2 1·1 3·0 26·2 2·3 - 5·9 22·6 - 2·1 20·5 74·0 -72·7 1·4 - 1·3 0·0 1971 59·2 - I2·9 46·3 7·3 23·0 0·8 2·9 26·8 2·4 - 5·5 23·7 - 1·9 21·8 75·4 -71·8 3·6 -I ·2 2·4 1972 59·4 -12·5 46·8 7·8 24·2 0·8 2·9 27·9 2·3 - 5·0 25·2 - 2·1 23·1 77·8 -73·7 4·2 - 1·2 3·0 1973 59·6 -12·9 46·7 7·6 26·3 1·7 3·9 3I ·0 2-1 - 4·4 28·8 - 4·3 24·5 78·7 -75·0 3·8 - 1·1 2·7 1974 63·8 -15·0 48·7 8·2 26·5 1·7 3·1 31·2 2·1 - 5·2 28·2 - 6·9 21·3 78·2 -75·5 2·7 - 0·9 I ·7 1975 64·5 -17·4 47·1 8·8 24·0 1·6 2·8 28·5 2·0 - 4·4 26·1 - 3·9 22·3 78·2 -70·8 7·3 -0·8 6·6 81 Economic Policy Review Table A.5 Private sector accounts (b) under existing arrangements (% of national income, at current prices) Income from employment less Direct tax and insurance 1975 64·5 - 17·4 1976 62·6 - 18·6 1977 59·6 - 17·6 1978 58·0 - 17·2 1979 57·1 -17·0 1980 56·1 - 16·7 Disposable income from employment 47·1 44·0 41 ·9 40·8 40·1 39·4 Disposable household grants 8·8 9·0 9·6 9·8 9·7 9·6 Gross trading income and rent 24·0 25·0 24·1 25·0 25·7 26·2 Net income from abroad and North Sea 1·6 1·8 2·1 2·2 2·2 2·4 Net interest 2·8 3·6 3·5 3·0 2·5 2·0 Property income before tax Grants from public sector less Direct taxes 28·5 2·0 - 4·4 30·4 1·9 - 3·6 29·7 1·8 - 4·2 30·3 1·9 - 4·6 30·4 1·9 - 4·2 30·6 2·0 - 4·2 Property income after tax less Stock appreciation 26·1 - 3·9 28·6 - 3·7 27·3 - 3·3 27·5 -H 28·1 - 3·2 28·4 - 3·4 Disposable property income 22·3 24·9 24·1 24·4 24·8 25·0 Total private disposable income less Expenditure on goods and services 78·2 -70·8 77·9 -72·4 75·6 -72·6 75·0 -73·1 74·7 -73·0 74·0 -72·4 Private sector financial surplus less Taxes on capital 7·3 - 0·8 5·5 - 0·8 3·0 - 0·9 1·9 - 1·0 1·6 -1·0 1·6 - 1·1 Net acquisition of financial assets 6·6 4·7 2·1 1·0 0·6 0·5 82 Appendix A Table A.S Private sector accounts (c) under devaluation(% of national income, at current prices) 1975 1976 1977 1978 1979 1980 Income from employment 64·5 less Direct tax and insurance - 17·4 62·1 - 18·3 57·2 -16·5 53·8 -15·4 52·5 - 15·1 52·0 -15·0 Disposable income from employment 47·1 43·8 40·6 38·4 37·5 37·0 Disposable householdgrants 8·8 8·9 9·0 8·6 8·3 8·1 Gross trading income and rent 24·0 26·0 27·3 29·7 30·8 31·4 Net income from abroad and North Sea 1-6 2·1 2·8 2·5 2·1 2·1 Net interest 2·8 3·7 3·7 3·1 2·6 1·9 Property income before tax Grants from public sector less Direct taxes 28·5 2·0 - 4·4 31·8 1·9 - 3·6 33·8 1·8 - 4·1 35·3 1·8 - 4·6 35·4 1·8 -4·8 35·4 1·9 -5·4 Property income after tax less Stock appreciation 26·1 - 3·9 30·1 - 4·5 31·5 - 4·2 32·5 - 3·0 32·4 - 2·6 31·9 - 2·6 Disposable property income 22·3 25·6 27·4 29·6 29·8 29·3 Total private disposable income less Expenditure on goods and services 78·2 -70·8 78·3 -72·4 77·0 -73·4 76·6 -74·8 75·6 -75·3 74·4 -74·8 Private sector financial surplus less Taxes on capital 7·3 - 0·8 5·9 - 0·9 3·6 - 0·9 1·8 -1·0 0·3 - 1·0 - 0·3 -1·0 Net acquisition of financial assets 6·6 5·0 2·7 0·9 - 0·7 -1·4 83 ------ Economic Policy Review Table A.S Private sector accounts (d) under import restrictions (% of national income, at current prices) 1975 1976 1977 1978 1979 1980 Income from employment 64·5 less Direct tax and insurance - 17·4 62·6 - 18·6 59·6 -17·8 58·4 - 17·6 58·4 - 17·7 58·3 - 17·9 Disposable income from employment 47·1 44·0 41·8 40·8 40·7 40·5 Disposable household grants 8·8 9·0 9·1 9·1 9·0 8·9 Gross trading income and rent 24·0 24·9 25·2 26·0 26·8 27·1 Net income from abroad and North Sea 1·6 1·6 1·5 1·4 1·2 1·2 Net interest 2·8 3·6 3·3 2·7 2·1 1·6 Property income before tax Grants from public sector less Direct taxes 28·5 2·0 - 4·4 30·0 1·9 - 3·6 30·0 1·8 - 4·0 30·1 1·8 - 4·4 30·1 1·8 - 4·4 29·9 1·9 - 4·4 Property income after tax less Stock appreciation 26·1 - 3·9 28·3 - 3'·5 27·7 - 3·0 27·5 - 2·8 27·5 - 2·7 27·3 - 2·9 Disposable property income 22·3 24·8 24·7 24·7 24·7 24·4 Total private disposable income less Expenditure on goods and services 78·2 -70·8 77·8 -72·4 75·6 -73·5 74·7 -74·3 74·4 -74·4 73·8 -73·8 Private sector financial surplus less Taxes on capital 7·3 -0·8 5·4 - 0·9 2·1 - 0·9 0·4 - 0·9 0·1 - 1·0 0·1 - 1·0 Net acquisition of financial assets 6·6 4·5 1·3 - 0·6 - 0·9 - 1·0 84 Appendix A 85 Economic Policy Review Table A.6 Public sector accounts (a) historical series (% of national income, at current prices) 1963 1964 1965 1966 Direct tax and insurance on wages and salaries Other direct taxes 8·8 6·5 9·0 10·1 5·9 5·8 10·8 5·6 Total direct taxes 15·3 14·9 15·9 16·3 Grants to households Other grants and transfers 6·4 6·2 6·7 1·4 1·5 1·6 6·7 1·6 Total grants 7·8 7·7 8·2 8·4 Net indirect taxes on consumption Other net indirect taxes 6·8 4·5 7·0 7·2 4·8 5·0 7·5 5·2 Indirect taxes less subsidies 11·3 11·8 12·2 12·7 Taxes less grants and subsidies 18·9 19·0 19·9 Net property income and debt interest 1·2 1·4 1·5 20·7 1·6 Public·sector disposable income less Expenditure on goods and services 20·1 - 23·8 20·4 - 24·3 21·4 - 24·6 22·3 -25·6 Public sector financial surplus plus Taxes on capital - 3·7 1·0 - 3·9 0·9 - 3·2 0·8 - 3·3 0·8 Net acquisition of financial assets - 2·7 - 3·0 - 2·4 - 2·5 1967 10·8 6·6 17·4 7·2 2·2 9·4 7·8 5·1 12·9 21·0 1·6 22·5 -27·5 - 5·0 0·9 - 4·1 86 Appendix A 1968 11·5 6·4 18·0 7·7 2·7 10·3 8·2 5·4 13·6 21·3 1·8 23·0 - 26·6 - 3·6 1·0 - 2·6 1969 12·0 6·4 18·4 7·6 2·9 10·5 8·8 6·1 14·9 22·8 1·9 24·7 - 25·3 - 0·6 1·3 0·7 1970 13·0 6·7 19·7 7·6 2·6 10·2 8·5 6·2 14·7 24·2 I '8 26·0 - 25·9 0·1 1·3 1·4 1971 12·9 6·2 19·1 7·5 2·7 10·3 8·0 6·0 13-9 22·7 1·9 24·6 - 26·4 - 1·7 1·2 0·6 1972 12·5 5·6 18·1 8·1 2·6 10·7 7·5 5·4 12·9 20·3 1·9 22·2 - 26·1 - 3·9 1·2 - 2·8 1973 12·9 5·1 18·0 7·8 2·6 10·4 7·3 4·6 11-8 19·4 1·9 21·3 - 26·2 - 4·9 1·1 - 3·9 1974 15·0 6·0 21·0 8·5 2·5 ll·O 6·1 4·2 10·3 20·3 1·6 21·8 - 29·0 - 7·2 0·9 - 6·2 1975 17·4 5·1 22·6 9·3 2·3 11·5 5·4 4·5 10·0 21·0 0·8 21·8 - 30·8 - 9·0 0·8 - 8·3 87 Economic Policy Review Table A.6 Public sector aecounts (b) under existing arrangements(% of national income, at current prices) 1975 1976 1977 1978 1979 1980 Direct tax and insurance on wages and salaries 17·4 18·6 17·6 17·2 17·0 16·7 Other direct taxes 5·1 4·5 5·2 5·7 5·8 6·0 Total direct taxes 22·6 23·1 22·8 22·9 22·8 22·7 Grants to households Other grants and transfers 9·2 2·3 9·4 10·1 10·3 10·2 10·0 2·3 2·3 2·4 2·4 2·5 Total grants 11 ·5 11·8 12·4 12·6 12·6 12·6 Net indirect taxes on consumption 5·4 5·4 8·2 8·0 7·4 7-1 Other net indirect taxes 4·5 5·2 5·3 5·5 5·8 6·0 Indirect taxes less subsidie!! 10·0 10·5 13-5 13·5 13·2 13·1 Taxes less grants and subsidies 21·0 21·8 23·9 23·8 23·4 23·3 Net property income and debt interest 0·8 0·3 0·5 1·2 2·0 2·8 Public sector disposable income less Expenditure on goods and services 21·8 - 30·8 22·1 -29·9 24·4 -28·5 25·0 - 27·5 25·3 -27·0 26·0 -26·8 Public sector financial surplus plus Taxes on capital - 9·0 0·8 -7·8 0·9 - 4·1 0·9 - 2·5 1·0 -1·6 1·0 -0·8 H Net acquisition of financial assets - 8·3 - 7·0 - 3·2 - 1·5 - 0·6 0·3 88 Appendix A Table A.6 Public sector accounts (c) under devaluation (% of national income, at current prices) 1975 1976 1977 1978 1979 1980 Direct tax and insurance on wages and salaries 17·4 18·3 16·5 15·4 15·1 15·0 Other direct taxes 5·1 4·5 5·1 5·8 6·5 7·4 Total direct taxes 22·6 22·8 21·6 21·2 21·6 22·4 Grants to households 9·2 9·3 9·4 9·1 8·7 8·5 Other grants and transfers 2·3 2·3 2·3 2·3 2·3 2·4 Total grants 11·5 11·6 11·7 11·4 11·0 10·9 Net indirect taxes on consumption 5·4 5·0 7·2 6·6 5·8 4·9 Other net indirect taxes 4·5 5·2 5·4 5·5 5·8 6·1 Indirect taxes less subsidies 10·0 10·2 12·6 12·2 11·6 11·0 Taxes less grants and subsidies 21·0 21·4 22·4 22·0 22·1 22·4 Net property income and debt interest 0·8 0·3 0·6 1·4 2·3 3·2 Public sector disposable income less Expenditure on goods and services 21·8 - 30·8 21·7 - 29·8 23·0 - 27·7 23·4 - 25·7 24·4 -24·7 25·6 -24·4 Public sector financial surplus plus Taxes on capital - 9·0 0·8 - 8·2 0·9 - 4·7 0·9 - 2·3 1·0 -0·3 1·0 H 1·0 Net acquisition of financial assets - 8·3 - 7·3 - 3·8 - 1·4 0·7 2·2 89 Economic Policy Review Table A.6 Public sector accounts (d) under import restriction (% of national income, at current prices) 1975 1976 1977 1978 1979 l1J80 Direct tax and insurance on wages and salaries 17·4 18·6 17·8 17·6 17·7 17·9 Other direct taxes 5·1 4·5 5·0 5·5 6·0 6·2 Total direct taxes 22·6 23·1 22·9 23·1 23·7 24·0 Grants to households 9·2 9·4 9·6 9·6 9·5 9·3 Other grants and transfers 2·3 2·3 2·2 2·2 2·3 2·4 Total grants 11·5 11·7 11·8 11·8 11·8 11·7 Net indirect taxes on consumption 5-4 5·4 7·5 7-1 5·6 4·8 Other net indirect taxes 4·5 5·1 5·1 5·3 5·4 5·6 Indirect taxes less subsidies 10·0 10·5 12·6 12·4 11·0 10·4 Taxes less grants and subsidies 21·0 21·9 23·6 23·7 23·0 22·7 Net property income and debt interest 0·8 0·3 0·8 1·7 2·6 3·5 Public sector disposable income less Expenditure on goods and services 21·8 - 30·8 22·2 - 29·8 24·4 - 27·6 25·3 -26·2 25·6 -25·7 26·2 -25·5 Public sector financial surplus plus Taxes on capital - 9·0 - 7·6 - 3·2 -0·9 - 0·1 0·8 0·9 0·9 0·9 1·0 0·7 1·0 Net acquisition of financial assets - 8·3 - 6·8 - 2·3 0·0 0·9 1·8 · 90  Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Appendix A Past Data and Projections for 1976-1980 Source A related resource from which the described resource is derived Economic Policy Review Volume 2, pages 68-90 Date A point or period of time associated with an event in the lifecycle of the resource March 1976