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19. PUBLIC EXPENDITURE IMPLICATIONS
163. The proposals described in the previous sections are intended to be implemented, in the main, during the present decade. Some indication of the costs of certain of these measures has been given in the appropriate sections; this section attempts to show how the pattern of public expenditure on education might have changed by 1981-82.
164. This can naturally be only a very tentative forecast. Many of the children to be educated then are not born yet, and their number is uncertain. The Government must be free to vary the pace of development of these new measures according to the circumstances, including for example the response to the proposed development of nursery education and in-service training from parents and teachers respectively. And no forecast can be usefully offered at this stage for the important sectors of education which have not been under review on this occasion, e.g. non-advanced further education, adult education and special education.
165. Within these limitations, it is possible to oiler some indication of the orders of magnitude of expenditure on primary and secondary schools (including nursery provision and in-service training for teachers) and on higher education (including initial training for teachers) that could result in 1981-82 if the aims set out earlier in this paper were achieved by that date. Provisional out-turn expenditure figures for 1971-72 are included for comparison. All the figures are at 1972 Survey prices.
166. Table 2 gives such an indication for the schools sector. On the above basis, the capital expenditure necessary for the expansion of nursery provision and for the extension of in-service training would have been almost wholly incurred by 1981 and is accordingly not reflected in the 1981-82 figures. Moreover, as explained in paragraph 35, few new school places will need to be started in the later part of this decade to cater for growth of school population, though there will still be a need to provide for movement to new housing areas.
Table 2
Public Expenditure on maintained Nursery, Primary and Secondary Schools
£m: 1972 Survey prices
| 1971-72 | 1981-82 |
Recurrent | | assumed |
Under fives | 42 | | 120 | |
In-service training and induction | 6 | | 55 | |
Fives and over: teacher' salary costs | 782 | | 1,090 | |
Fives and over: other costs | 350 | | 545 | |
Total recurrent | | 1,180 | | 1,810 |
Capital | | |
Basic needs | 263 | | 95 | |
Replacement and improvement | 32 | | 95 | |
Total capital | | 295 | | 190 |
Total schools | | 1,475 | | 2,000 |
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167. A similar indication for the higher education sector is given in Table 3. No division of this expenditure by type of institution can usefully be attempted this far ahead.
Table 3
Public Expenditure on Higher Education
£m: 1972 Survey prices
| 1971-72 | 1981-82 |
| | assumed |
Recurrent | 576 | | 945 | |
Capital | 111 | | 175 | |
Total Higher Education | | 687 | | 1,120 |
168. Thus on the basis of the assumptions made in the preceding paragraphs, the total annual expenditure in these two sectors - which together account for some three-quarters but not the whole of the education expenditure within the Secretary of State's responsibility - could rise by some £960 million over the decade 1971-72 to 1981-82, from £2,162 million to some £3,120 million. Within this overall increase, annual expenditure in the two sectors would grow at different rates, mainly for demographic reasons. In the schools sector the increase would correspond to an annual rate of growth of some 3 per cent, which may be compared with a figure of 2½ per cent(1) for the decade 1961-62 to 1971-72. For the higher education sector, where the very rapid expansion of the 1960s gave an annual growth rate over that decade of some 6½ per cent(1), the corresponding figure for the decade to 1981-82 would be some 5 per cent.
169. These percentage figures are very vulnerable to the uncertainties of longer-term forecasting, and are not of great significance in themselves. But, taken together, they illustrate the Government's intention to continue the expansion of the education service; and, at the same time, reflect their judgment and intentions as to respective rates of expansion within the growing total. The government believe that these constitute a balanced programme which builds upon the successes already achieved and will match, as they develop, the different requirements of the decade ahead.
(1) After discounting the impact of the relative price effect.