HC Deb 14 June 1920 vol 130 cc868-9
26. Mr. G. LOCKER-LAMPSON

asked the Prime Minister whether he will consider the advisability of adopting the policy of limiting public expenditure to a definite proportion of the estimated national income?

The PRIME MINISTER

It appears to me that the proper basis for arriving at the annual estimates of public expenditure is to ascertain what amount is required for carrying on such public services as Parliament has decided to be desirable.

Mr. LOCKER-LAMPSON

Can the right hon. Gentleman say whether the Cabinet has made or is making any estimate?

Captain WEDGWOOD BENN

Does the right hon. Gentleman say we should accept the principle that public expenditure should be not more than a certain proportion to the income of the public?

Mr. LOCKER-LAMPSON

Would it be possible to issue a White Paper explaining these estimates to the House?

The PRIME MINISTER

If the hon. Member means estimates of income, he knows very well that that is a very difficult figure to ascertain, because it is very largely guesswork, and we may have two or three different authorities.

Mr. BILLING

Does the right hon. Gentleman not think the expenditure of the country should have some relation to taxation?

The PRIME MINISTER

I am sorry to say that that is a matter of which this House has not complete control. The expenditure of the country is determined very largely by the expenditure on the War, by legislation which the House of Commons has deliberately adopted, by figures for pensions, and other items of expenditure, such as the Army and Navy, which come under the review of the House of Commons.

Mr. A. M. SAMUEL

May I ask whether a policy of social expenditure does not to a great extent depend on the means of the country, and, therefore, would it not be advisable for us to know what the means of the country are before we embark upon any policy of social reform?

The PRIME MINISTER

I agree with my hon. Friend, but he knows very well that when you come to estimate income you may have two or three different views. Many have placed their views on that subject before the House.

Mr. SAMUEL

Can the right hon. Gentleman give us those figures, and is it not in our power to form our own views as to the correctness of those estimates, and to consider whether we can support a policy of social reform unless we are convinced that those means are adequate means to meet them?

The PRIME MINISTER

I hope my hon. Friend has done so. He is one of the Members who has been voting either for or against social reform, and he has done it with full knowledge, I have no doubt, of what is the income of the country.

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