§ Now let us look at expenditure. The Committee will recall that having, in the first place, estimated total expenditure at £4,231 million, I then made proposals for the reduction of food subsidies, on the one hand, and increases in social benefits, on the other, the result of which I judged would be to reduce expenditure to £4,151 million. I think it will be more convenient to the Committee if I take this figure as my starting point.
§ In the event, total expenditure amounted to £4,351 million, an excess of £200 million. Expenditure on Consolidated Fund Services was £667 million, an increase of £42 million on the Budget estimate. The principal reason is, of course, the higher level of interest rates, particularly on our short-term borrowings, which followed the rise in Bank Rate from 2½ to 4 per cent. This is not a negligible addition to our expenditure; but it is a good deal less than the rather more imaginative figures that have been suggested at various times. As the Committee know, or should know, part of it has been, or will be, recovered by the Exchequer in taxation, so the undue gloom of hon. Members need not continue. Moreover, our monetary policy has made an important contribution to the easing of our economic position in the last 12 months. We should not, and I feel we shall not, under-rate the new look which it has given to our affairs.
§ Expenditure on the defence programme was estimated at £1,377 million, that is a net figure after appropriating in aid £85 million as the sterling counterpart of defence aid from the United States. In the event the net expenditure amounted to £1,404 million, an excess of £27 million. Civil Supply expenditure was estimated at £2,149 million; in fact, the figure was £2,280 million, an excess of £131 million. This is accounted for partly by the postponement of some of the food subsidy changes, and partly by a number of varied items, details of which have already been published. Here I will mention the provision for meeting the Danckwerts Award on doctors' pay. This bequest cost nearly £40 million. Then there was extra expenditure or research and other matters by the Ministry of Supply and additional outlays by the Ministries of Food and Materials on their trading services.