§ 55. Captain Waterhouseasked the Chancellor of the Exchequer if he will now give details of the cuts made in capital expenditure which were to become operative in the latter part of 1950 and economies on Revenue account which the Prime Minister, in his speech in this House on 24th October, 1949, stated would have a disinflationary effect of£250 million a year.
§ Mr. GaitskellI would refer the hon. and gallant Member to my predecessor's speech on 26th October, 1949, and his Budget speech last year. Apart from changes announced then and subsequently, some expansion in the level of investment became possible as the economic situation improved. But I am satisfied that 2300 the cuts by restricting demand at home played a valuable part in helping us to expand the level of our exports.
§ Captain WaterhouseCan the right hon. Gentleman give the total of the economies to date?
§ Mr. GaitskellThe economies announced were £240 million, both on investments and on current account.
§ Captain WaterhouseHave these economies actually been made?
§ Mr. GaitskellNo. Reductions were announced—for instance, the housing programme was restored, and the proposal to impose a charge of 1s. on prescriptions was dropped.
§ Mr. WatkinsonThe Chancellor told me in answer to a Question a few weeks ago that his mind was not closed to reductions in national expenditure. Do I take it from his answer to that supplementary question that his mind is now closed to any further reduction?
§ Mr. GaitskellI am always open to consider suggestions.
§ Mr. Godfrey NicholsonHas the Chancellor noticed any disinflationary effect arising from any of his activities?
§ Mr. GaitskellCertainly. That played a considerable part in our favourable balance of payments last year.