§ 3.32 p.m.
§ The Chancellor of the Exchequer (Mr. Dalton)This is the second time in three years that I have to present to the Committee a Supplementary Budget. My reason today is that we must strengthen still further, and without delay, our budgetary defences against inflation. This need arises from the decisions which His Majesty's Government have taken, and are executing, to increase exports and reduce imports, in order to narrow, as swiftly as we can, the very wide and dangerous gap in our overseas balance of payments, particularly with the Western Hemisphere. The effect of these decisions must be, if taken alone and unsupported by other measures, to increase the inflationary pressure by reducing the supply of goods available in the home market without, at the same time, reducing the total of purchasing power. To help to counteract this is the purpose of the proposals which I am making today.