HC Deb 20 March 1969 vol 780 cc731-2
48. Sir C. Osborne

asked the Chancellor of the Exchequer what were the factors that caused Her Majesty's Government to borrow £1,300 million in 1967–68; to what extent these factors ceased to operate to enable this borrowing to be reduced to nil in 1968–69; and what special new action Her Majesty's Government is now taking to produce a surplus in 1969–70.

The Chief Secretary to the Treasury (Mr. John Diamond)

In 1967–68 the central Government more than covered its direct expenditure from receipts other than borrowing. This surplus helped to finance part of the Government's lending to the rest of the public sector; the remainder was met by borrowing. In the current financial year, public expenditure has been firmly contained, and the Government's receipts are higher than in the previous year as a result of measures taken in the Budget and on 22nd November. As regards 1969–70, I cannot anticipate my right hon. Friend's Budget statement.

Sir C. Osborne

Since the Chancellor and his predecessor were both wrong in their forecasts for the coming year, why should the House believe that the present Chancellor's forecast of a surplus for the current year will prove correct?

Mr. Diamond

Every Minister of every party tries to give the House the best information that he can.

Mr. Emrys Hughes

Is the Treasury considering following the example of the Gas Council and borrowing large sums of money from Germany to pay the cost of Polaris submarine material and American aircraft?

Mr. Diamond

That question does not arise immediately out of the Question on the Order Paper.