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Hong Kong (Contracts)
Mr. Byers: To ask the Secretary of State for Foreign and Commonwealth Affairs if he will list those major contracts which will straddle the transition in Hong Kong which have been considered by the Sino-British joint liaison group, the date of their award, the successful contractor and the approximate value of the contract. [9607]
Mr. Hanley: The Sino-British joint liaison group has discussed a large number of contracts and franchises which will straddle the transition. These include contracts on infrastructure development such as for the new airport, and the provision of power and transport services. I will write to the hon. Member with a full list of the contracts, and, where known, the dates of their award, the name of the successful contractors, and the value of each contract. A copy of the letter will be placed in the Libraries of the House.
NATIONAL HERITAGE
National Lottery (Northern Ireland)
Ms Mowlam: To ask the Secretary of State for National Heritage if she will list (a) the number of projects in Northern Ireland which have been given funding by the Millennium Commission and (b) the number of projects from Northern Ireland which are currently under consideration by the Millennium Commission. [3841]
Mrs. Virginia Bottomley: This is a matter for the Millennium Commission. I shall write to the hon. Member in my capacity as chairman of the commission and place copies of my reply in the Libraries of the House.
"New Labour's Public Expenditure Plans"
Mr. Derek Foster: To ask the Secretary of State for National Heritage what costs quoted in the document, "New Labour's Public Expenditure Plans", were prepared in his Department; what detailed assumptions and interpretations were provided to officials in his
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Department to enable preparation of each cost; and what was the total cost to public funds of preparing each estimate. [6344]
Mrs. Virginia Bottomley: The Department of National Heritage, in conjunction with the Treasury, prepared factual material relating to costings published in "New Labour's Public Expenditure Plans" numbered 54 and 55. The detailed assumptions and interpretations that were provided to officials are set out in my right hon. Friend the Chief Secretary's reply to the hon. Member of today. It is not the normal working practice to keep a record of the time spent in providing factual information to Ministers.
DUCHY OF LANCASTER
Web Site
Mr. Gordon Prentice: To ask the Deputy Prime Minister what plans he has to open his own web site. [9438]
The Deputy Prime Minister: The matter is under consideration.
Legislation
Mrs. Roche: To ask the Chancellor of the Duchy of Lancaster how many items of legislation relating to his Department have been repealed since January 1994; how many statutory instruments were introduced during the same period; and how many of the latter were (a) deregulatory and (b) fee orders. [9374]
Mr. Bates: An analysis of new regulations introduced by all Departments during 1994 and 1995 is given in the table. By the end of 1996 the total number of deregulatory orders will have risen to 1,000. Comprehensive information about the number of other regulations is only gathered after the end of the year. A fuller analysis of regulations made during 1996 will be carried out as soon as the necessary information is available from HMSO and will be provided to the hon. Member.
| 1994 | 1995 | |
|---|---|---|
| Deregulatory measures | 218 | 151 |
| NHS Trusts | 269 | 176 |
| Fees and local provisions | 188 | 152 |
| EU and international obligations | 151 | 140 |
| Other (possible impact on business) | 141 | 93 |
| Other (no impact on business) | 500 | 692 |
| Commencement orders, Orders in Council and others not subject to Parliamentary procedures | 1,867 | 1,963 |
A list of regulations repealed or amended since 1993 under the Government's deregulation initiative as at April 1996 was placed in the House Libraries in May. A revised list of the 1,000 regulations repealed or amended by the end of December will be published early in the new year.
No. 2 Marsham Street
Mr. Harry Greenway: To ask the Chancellor of the Duchy of Lancaster if he will make a progress report on the future of No. 2 Marsham street. [8126]
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Mr. Freeman: Responsibility for the use of No. 2 Marsham street has been delegated under the terms of its framework document to the Property Advisers to the Civil Estate under its chief executive, Mr. Neil Borrett. The agency is therefore responding to the question.
Letter from N. E. Borrett to Mr. Harry Greenaway, dated 13 December 1996:
The Chancellor of the Duchy of Lancaster has asked me to write to you in response to your Parliamentary Question regarding the future of 2 Marsham Street.
The decision to demolish 2 Marsham Street was announced by the Secretary of State for the Environment in February 1992. The current occupants, the Department of the Environment, are to relocate to Ashdown House and Eland House in Victoria following the completion of fitting out works now in progress. These moves are likely to be completed around Easter 1997. The other occupants of 2 Marsham Street, the Department of Transport, were successfully relocated to Great Minster House in 1995.
An international urban design competition was held earlier this year to produce designs which will guide the master planning for the future redevelopment of the site. Entrants were asked to submit designs which promoted a mixture of uses, make effective use of the available space and related well with the site's urban context. The results of the competition were announced by the Deputy Prime Minister in October. Work is planned to start on the demolition of 2 Marsham Street in April 1997 and to be completed in the Autumn of 1998, following which the site will be redeveloped for Government use if there is a requirement or sold.
"New Labour's Public Expenditure Plans"
Mr. Derek Foster: To ask the Chancellor of the Exchequer what interpretations or assumptions were made in costing the spending commitments described as having been made by the Labour party in the document, "New Labour's Public Expenditure Plans"; and if the same interpretations and assumptions were adopted by each Government Department. [6338]
Mr. Waldegrave: The interpretations and assumptions identified by Ministers, assisted by their special advisers, are set out for each costing. These interpretations and assumptions were used by all Government Departments. In addition, general guidance was provided as set out in my separate written answer of today. Final responsibility for the judgments made in the document "New Labour's Public Expenditure Plans" rests with Treasury Ministers.
- Foreign Office
- 1. Increase Overseas Aid
- The cost of restoring the Overseas Aid budget to the same percentage of GDP as in 1979.
- 2. Reverse cuts in the World Service and British Council
- The cost of restoring funding to the BBC World Service and the British Council to the level in 1995-96 in real terms.
- 3. Rejoin UNESCO
- The cost of rejoining UNESCO.
- Ministry of Agriculture Fisheries and Food
- 4. Introduce an early retirement scheme for farmers
- The cost of the United Kingdom taking up the CAP early retirement scheme, assuming a 25 per cent take up amongst eligible farmers.
- 5. Increase the number of state vets
- The cost of employing the same number of veterinary staff as in 1979.
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- 6. Create more Environmentally Sensitive Areas
- The cost of a 10 per cent. increase in the current provision for ESAs.
- Department of Trade and Industry
- 7. Establish Regional Development Agencies in England
- The cost of:
- 8 English regional development agencies each with an annual administrative cost equivalent to that of the Welsh Development Agency.
- The RSA budget to be increased overall so that England receives as generous a sum in relation to its proportion of total UK unemployment as the average of the Scottish and Welsh take.
- 8. Establish a Business Development Bank
- The cost of a Business Development Bank on the same basis as the proposal from the Union of Independent Companies in 1993.
- 9. Introduce New Technology Trusts
- Assume that the "trusts" provide more subsidy for R&D--about £15 million--less the costs of the existing Innovation Counsellors included in Business Links.
- 10. Introduce a Venture Capital Guarantee Scheme
- The cost of a 10 per cent. increase in the Loan Guarantee Scheme.
- 88. Implement the Parental Leave Directive
- The cost to the public sector of implementing the parental leave directive.
- Department of Transport
- 11. Restore public ownership of the railways
- The cost of a complete takeover of Railtrack by the Government assuming a 30 per cent. premium over the market price and external financing requirements to service debt and take account of forward investment plans.
- 12. Provide new investment in railway safety
- The cost of:
- 1. Installation, operation and maintenance of Automatic Train Protection
- 2. Replacing 25 per cent. of carriages.
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Mr. Foster:
To ask the Chancellor of the Exchequer what guidance was given to civil servants in respect of assembling the factual material to facilitate the costings of the public expenditure commitments described as having been made by the Labour party in terms of territorial bases, price level and first or four-year commitment, including possible overlaps and other similar costings. [6339]
Mr. Waldegrave:
The costings were conducted in accordance with the guidance on costing Opposition policy which was published as a memorandum submitted by the Cabinet Secretary to the Treasury and Civil Service Select Committee in March 1990, reproduced in "Guidance on Guidance: An index of Useful Documents" issued in February 1996 and available in the Library of the House. In addition, Ministers provided the following general framework to civil servants in respect of assembling the factual material.
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Mr. Foster:
To ask the Chancellor of the Exchequer what was (a) the cost to his Department and (b) the overall cost of the exercise to cost the spending commitments described as having been made by the Labour party in the document "New Labour's Public Expenditure Plans", published on 20 November. [6336]
Mr. Waldegrave:
It is not the normal working practice to keep a record of the time spent in providing factual information to Ministers and it is not therefore possible to offer a reliable estimate of the costs involved.
Mr. Foster:
To ask the Chancellor of the Exchequer what scrutiny over the exercise to cost what were termed Labour party public expenditure commitments was carried out by the Treasury; and what criteria were used when checking consistency with other available estimates of the costs. [6340]
Mr. Waldegrave:
The exercise was carried out in accordance with the published guidance on the procedure for costing policies of opposition parties. Treasury
17 Dec 1996 : Column: 502
Ministers, assisted by their special advisers, in conjunction with Ministers and special advisers from other Departments, were responsible for identifying the text of commitments together with any further interpretations or assumptions necessary to allow the commitments to be costed. Treasury officials, in conjunction with officials from other Departments, were responsible for providing factual material. Final responsibility for the judgments made in the document "New Labour's Public Expenditure Plans" rests with Treasury Ministers.
Mr. Foster:
To ask the Chancellor of the Exchequer if (a) Ministers, (b) their special advisers and (c) civil servants, identified the text of spending commitments described as having been made by the Labour party in the document "New Labour's Public Expenditure Plans", published on 20 November. [6337]
Mr. Waldegrave:
In accordance with the guidance, Ministers and their special advisers identified the text of commitments. To the best of my knowledge, civil servants other than special advisers did not identify the text of the commitments.
Mr. Foster:
To ask the Chancellor of the Exchequer to what extent the factual material provided by civil servants for preparation of the document "New Labour's Public Expenditure Plans" was altered by Ministers or special advisers; and what guidance was given about reconciling differences in costings. [6341]
Mr. Waldegrave:
The costings published in "New Labour's Public Expenditure Plans" are consistent with the factual material provided by civil servants on the basis of assumptions made by Ministers.
13. Build more high speed rail links
The cost of modernising the Great Western line (which runs from London to Cardiff) based on the CBI's estimate for electrification in their report "Winning Ways", 18 July 1996.
The cost of modernising the London to Norwich line and the Bristol to Penzance lines based on the cost per mile of modernising the East Coast Main Line at 1996-97 prices.
14. Reduce bus and rail fares in London
The cost of:
A 10 per cent. reduction in LT fares.
A 10 per cent. reduction in NSE fares.
15. Provide more investment in buses
The cost of an increase of 10 per cent. in Government support for local bus services.
16. Reduce freight track access charges
The cost of a 20 per cent. reduction in freight track access charges on the assumption that Railtrack has been renationalised.
17. Invest in a network of freight terminals
The cost of doubling the existing 5 Channel Tunnel freight terminals.
Department of the Environment
18. Increase spending on house building
The increase in public spending if the stock of set aside receipts are released over five years and no set aside applies to new receipts.
19. Return business rates to local control
That in each year from 1997-98 to 2001-02, councils will choose to increase net revenue spending by 1 per cent. more than it would otherwise have been increased.
That the increase will be financed by additional increases in council tax and business rates, and that the percentage increase in each will be the same.
That the reserve powers to cap which Labour propose to retain would only bite on the dozen or so highest spenders, and so would only minimally affect overall spending.
20. End Council Tax capping
That in each year from 1997-98 to 2001-02, councils will choose to increase net revenue spending by 1 per cent. more than it would otherwise have been increased.
That the increase will be financed by additional increases in council tax and business rates, and that the percentage increase in each will be the same.
That the reserve powers to cap which Labour propose to retain would only bite on the dozen or so highest spenders, and so would only minimally affect overall spending.
21. Set up mortgage rescue scheme
The cost of providing extra grant to housing associations to enable them to buy up the property of people facing repossession. However, assume that only half choose to take advantage of the scheme.
22. End CCT in local government
The loss of expected future savings made from Compulsory Competitive tendering in local government.
23. Establish English Regional Assemblies
The cost of nine regional chambers with 50 members on average allowances of £2,500 and 50 support staff with average staff costs of £40,000 (including premises costs).
24. Establish a London authority
The cost of a strategic authority with:
1. 64 councillors.
2. A referendum.
3. Elections every 4 years.
Home Office
25. Establish a network of women's refuges
The cost of a network of women's refuges based on the following assumptions:
1. Refuge services cost £12,000 to £13,000 per family per annum (Women's Aid Federation report published in 1994).
2. One off Capital costs per refuge between £34,000 to £52,000 (London Housing Unit Report).
3. An extra 2,000 family bedspaces estimated on the basis of a recommendation by the Home Affairs Select Committee.
26. End the privatisation of prisons
The cost of:
1. Returning the four private sector prisons to the public sector.
2. Ending the contracting out of education.
3. Ending the contracting out of IT.
4. Ending the contracting out of seven court escort areas.
5. Returning the DCMF prisons to the public sector.
6. Ending market testing in the Home Office.
89. Provide referendums on voting reform and a Scottish Parliament
The cost of:
(A) a UK wide referendum; and
(B) a referendum in Scotland.
Legal Departments
27. Improve access to Legal Aid
The cost of reinstating the changes in eligibility since 1992.
28. Reform the Crown Prosecution Service
The additional costs associated with providing staff for each of the 43 police areas.
29. Establish a community legal service
The additional cost of employing the equivalent of 1½ salaried lawyers in each of the Citizens' Advice Bureaux, assuming some savings in the legal aid budget.
30. Change the design of court buildings
The cost of refurbishing Crown Courts and the larger magistrates courts, which have not already provided separate waiting facilities for witnesses and victims.
31. Introduce fast track sentencing for persistent young offenders
The cost of fast track sentencing for persistent young offenders.
Department for Education and Employment
32. Introduce sabbaticals for teachers
The cost of teachers with 10 years' service taking one sabbatical of one third of a year and the cost of teachers with 15 years or more service taking one sabbatical of a full year.
33. Introduce a new student loans scheme
The additional cost of extending student loans to cover the maintenance grant and to include fees and maintenance of part-time Higher Education students, assuming that the number of students entering Higher Education is not affected and that loan take up also remains unchanged (at 75 per cent.).
34. Double the number of students in higher education
The fifth year cost of a programme to steadily increase student numbers that would, after 20 years, have doubled the (percentage) participation rate among young people in full-time higher education.
35. Expand post-16 education
The additional cost of all 16 and 17 year olds who are currently not in any education staying on in full-time education in secondary schools.
36. Create a nursery place for every 3 year old
The cost of providing a nursery place for every 3 year old assuming that the voucher mechanism is used, that the value of the voucher is the same as for four year olds and the funding can be clawed back from local authorities in the same way as for 4-year olds.
37. Provide access to a lap top computer for every child
The cost of supplying one new lap top computer for 1 in 3 primary pupils over 8 years old and 1 in 3 secondary pupils if the computers cost about £1,000 each.
38. Increase capital spending on schools
The cost of increasing capital spending by £3.2 billion over 10 years by allowing schools to borrow the money from the banks, without taking account of interest rates.
39. Cable up every school--the cost of computer equipment and training
1. The cost of providing multimedia computers and Internet links to all schools assuming that BT pay the line, connection and on-line costs.
2. The additional cost of 2½ days training per teacher.
3. Assume that in secondary schools there would need to be one multimedia PC for every 10 pupils which would need to be networked throughout the school. In addition there would be one room with 30 PCs in each school. One in ten of the new computers would be connected to a good quality printer and to the Internet via an ISDN line. Each primary school would have one multimedia PC in each classroom with an extra three in each school, e.g. for the library. One computer in each school would be linked to the Internet.
40. Introduce a literacy guarantee at age 7
The cost of reintroducing the Reading Recovery Programme and extending it nationally.
41. Reduce class sizes for 5, 6 and 7 year olds
1. The cost of reducing class sizes to 30 or under for 5, 6 and 7 year olds.
2. Take a mid-point estimate of the range of possible costs.
42. Provide better teacher training
The cost of one day's extra training and supply cover per year for each teacher in maintained schools.
43. Establish intensive literacy summer schools
1. 300,000 pupils attend a 3 weeks summer school each year.
2. Pupils are taught in groups of 10 for 3 hours each day.
3. The cost of overheads is calculated in the same way as the ratio of overheads to teachers' salaries in LEA spending on schools.
4. Teachers can be recruited at the standard term-time supply rates.
44. Take steps to tackle youth employment
1. Each unemployed person receives on average £60 per week in benefits.
2. Each person offered a placement accepts it and completes a full six months.
3. 5 per cent. of participants leave the count and incur no further costs, 60 per cent. of those remaining receive wage subsidies, 20 per cent. enter training, 10 per cent. enter a placement with the voluntary sector and 10 per cent. with the Environmental task force.
4. It costs £2,000 to provide a placement in the voluntary or environmental task force--in line with the former Community Action Programme--and to fund a place in education/training.
45. Introduce a £75/week incentive for the long term unemployed
The cost of a £75 a week incentive which lasts 26 weeks for those unemployed over two years assuming no increase in the number of people getting work.
48. Re-establish the Community Action Programme
The cost of re-establishing the Community Action programme at its 1995-96 level.
49. Provide extra support to redundant workers
The cost of giving everyone who becomes redundant and joins the claimant count a place on Job Search Plus, as a replacement to the existing Job Search Plus scheme.
50. Provide better careers advice
The cost of 2 per cent. of the employed population having a full interview with a trained careers officer and a booklet.
51. Establish a University for Industry
The cost of an initial intake of 30,000 students based on the costs of the Open University.
52. Make the Re-Employment service available to non-working women
The cost of providing access to the Employment Service on a voluntary basis to non-working women who are not registered unemployed.
53. provide job advocates for the long term unemployed
The cost of extending the current "1-2-1" scheme to all people over 25 who complete one year in unemployment.
Department for National Heritage
54. Introduce a national network of Millennium Volunteers
The cost of giving 100,000 young people each year a place as a Millennium Volunteer on the same basis as the Environmental Task Force, being paid the equivalent of benefit (£60/week) plus £20. Also assume that it costs an extra £2,000 to provide each place, in line with the costs of the former Community Action Programme.
55. Abolish admission charges to national museums
The cost of ending admission charges to museums and galleries funded by the Department of National Heritage.
56. Abolish the internal market in the NHS
The cost of abolishing the internal market in the NHS assuming that the average annual efficiency gain returned to the level before the reforms.
57. Withdraw PFI from the NHS
The cost of replacing private sector spending on Department of Health capital projects with public sector spending.
58. Introduce GP commissioning
The net cost of introducing GP commissioning and abolishing GP fundholding.
59. Increase spending on community care
The cost of £135 million extra spending on community care in 1993 uprated to 1996-97 prices.
60. Reintroduce a regional health structure
The cost of reintroducing the old Regional Health Authorities.
62. End CCT in the NHS
The loss of savings from compulsory competitive tendering in the NHS.
63. Phase out private provision from the NHS
The loss of net income generated by pay beds.
Department of Social Security
64. Reduce the benefit tapers
The cost of
1. (A) a reduction in the Family Credit taper from 70 per cent. to 40 per cent.
(B) a reduction in the Housing Benefit taper from 65 per cent. to 40 per cent.
and
2. (A) a reduction in the Family Credit taper from 70 per cent. to 30 per cent
(B) a reduction in the Housing Benefit taper from 65 per cent. to 30 per cent.
65. Introduce a Pension Entitlement/Minimum Guaranteed Income for Pensioners
1. The cost of a 100 per cent. take up of Income Support and the abolition of all capital rules, except those in Housing Benefit and Council Tax Benefit, with a 100 per cent. taper.
and
2. A Minimum Guaranteed Income for pensioners set at £80/week with a 100 per cent. taper.
66. Abolish the "16 hour rule"
1. The cost of making any student other than those undertaking full-time courses in higher education eligible for JSA.
2. Take a mid-point estimate of the range of costs.
67. Allow local benefit decisions
1. The cost of paying 500,000 unemployed claimants a year their income from JSA 6 months in advance.
2. In 20 per cent. of cases, this money has to be repaid again since it is lost by the recipient.
68. Abolish the Jobseeker's Allowance
The cost of abolition of the JSA.
69. Introduce a maintenance disregard against Income Support
The cost of a £20 maintenance disregard against Income Support.
70. Allow an Income Support carry over
Assume that anyone unemployed for 6 months or more and in receipt of means-tested JSA will receive payments at the same rate for four weeks after taking a job.
71. Provide work help for lone parents
The cost of:
(a) giving Lone parents on Family Credit free school meals.
(b) giving Lone parents on Family Credit a £10 per week disregard for work related expenses.
72. Increase the take up of Family Credit
An increase in the take up of Family Credit to 96 per cent.
73. Introduce a JET scheme
The cost of a JET scheme for lone parents similar to the Australian JET scheme.
74. Encourage those on benefit to do voluntary work
The cost of 1 in 12 unemployed people doing voluntary work assuming that they stay on benefit for four weeks longer than they would otherwise have done.
75. Introduce a Disabled Rights Bill
The cost of a Disability Rights Commission plus the cost to:
(A) reduce from 20 to 5 the number of employees used to define those small employers exempt from the DDA's employment rights.
(B) extend the DDA to cover those wrongly perceived to have a substantial disability.
76. Allow unemployed people to borrow against future earnings
1. The cost of giving 50 per cent. of people on JSA for over a year a £300 loan.
2. In 20 per cent. of those cases the money is not repaid. In the remaining 80 per cent. of cases, the money is repaid over an average 2 year period.
77. Introduce budgeting loans for the low paid
1. The cost of extending the Social Fund to Family Credit recipients.
2. Assume that 30 per cent. of households on Family Credit use the fund each year.
78. Introduce Income Support protection
The cost of providing an automatic re-entitlement to Income Support at the claimant's previous rate if the job ends within six months.
79. Introduce an income disregard for the wives of unemployed men
The cost of allowing any couple, in which one member of the couple declares themselves to be unemployed, to disregard an extra £5 in earnings in addition to the existing £10 disregard.
80. Increase the disregard in the JSA
The cost of doubling the disregard in JSA to £10 a week.
Appendix 1. Introduce a flexible decade of retirement
The cost of a full basic pension payable from the age of 60 assuming that the same percentage of eligible people claim the pension from the new state pension age as currently do so.
Scottish Office
81. Increase tree cover
The cost of extending tree cover by 50 per cent. by 2010.
82. Establish a Scottish Parliament
The cost of the level of provision planned by the then Government in the run up to 1979, taking account of the Scottish Constitutional Convention proposals published in 1995.
83. End the sale of Forestry Commission land
The loss of expected receipts from the sale of Forestry Commission land.
Treasury
85. Introduce a National Minimum Wage
The estimated gross increase in the public sector pay bill assuming a Minimum Wage set at £4.00 per hour with a 50 per cent. restoration of differentials across the entire earnings distribution, using the 1995 New Earnings Survey.
87. Increase funding on Trans European Networks
The cost of the European Commission's recent proposal to increase spending on TENs.
In the case of the following costings Treasury Ministers accepted Labour's own estimate of the costs:
46. Broaden the take up of Investors in People
47. Introduce Learn as you Earn Smartcards
61. Cut waiting lists
In the case of No. 84, "Establish a Welsh Assembly", the estimate was made by the Secretary of State for Wales.
In the case of No. 86, "Establish a European Recovery Fund", Treasury Ministers took the figure of about £11 billion, the approximate UK share of a proposal for a European Recovery Fund which was supported by Labour MEPs in the European Parliament, and scaled this back to produce a costing of £250 million a year over five years.
Guidance on Costings
Introduction
This note explains the basis on which proposals should be costed. It is important that all proposals are costed on a consistent basis.
2. There may be some proposals for which a costing consistent with this guidance would be inappropriate. In such cases, please contact the Special Adviser to the Chief Secretary to agree an alternative basis.
Which year?
3. Policy proposals which involve an ongoing annual cost should be costed in year 5, in 1996-97 prices.
4. Where year 5 gives a misleading impression of the cost--because the cost builds up rapidly after that, or is much higher before year 5, that should be indicated separately.
One-off costs
5. All costs are annual costs. Where proposals involve a one-off cost--such as the purchase of shares in a privatised industry--it should be marked clearly as a one-off cost in 1996-97 prices. That cost will be assumed to be spread over the 5 years of the Parliament (that is, a fifth of the one-off cost will be added to the annual cost in year 5).
Changes from plans
6. The costs should be expressed in terms of changes from current policies assuming that none of the other proposals to be costed are implemented. They should be defined as additions to GGE (broadly, central and local government spending including support for public corporations). The costs need not distinguish spending inside and outside the Control Total.
Revenue effects
7. Only the effects on General Government Expenditure should be included. If there are additional offsetting effects on revenues or on public corporations' borrowing, these should be identified separately, but not included in the costings.
Offsetting changes in expenditure
8. If a proposal would automatically and intrinsically lead to an offsetting reduction to spending elsewhere--such as benefit savings from putting unemployed people into a training programme--the proposal should be shown net of any changes to other spending programmes.
Phased costs
9. If a proposal is to "phase in" a policy then it should be assumed that this will be phased in over 5 years.
10. Policies which would be implemented only "as far and as fast as resources allow" should not be phased in, but calculated as if they were implemented immediately.
Behavioural effects
11. Behavioural effects should not be included unless they are intrinsic to the proposal. For example, the cost of allowing local authorities to spend capital receipts should not assume that capital disposals will increase. However, the cost of lifting capping would include an assumption that some local authorities would increase spending above their existing capping limits.
Prices
12. All costings should be shown in 1996-97 prices.
13. If it is necessary to assume a price level to calculate the costing, it should be assumed that prices will grow by 2 per cent. a year from 1997-98.
14. If other macroeconomic assumptions are required, they should be consistent with the 1996-97 FSBR. If assumptions are required that are not included in the FSBR, they should be agreed with the Chief Secretary's Special Adviser.
EU-related costs
15. Any proposal involving expenditure from the European Union budget should take account of the effect on the overall level of the EU Budget, the UK contribution and the abatement. Please discuss any costings involving European Union expenditure with the Chief Secretary's Special Adviser.
Territorial consequentials
16. The costings should include any consequentials in Scotland, Wales and Northern Ireland of policy changes in England. In the case of Social Security costings, there is a separate page to add in the costs of pledges for Northern Ireland. If you need assistance calculating these, please contact the Chief Secretary's Special Adviser.
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