§ We have looked at forward expenditure and the budgetary position. Now, if we are to get a clear idea of the line to be taken in the coming year, we must broaden our view to take in the prospects for the whole economy. We want to see how we can take advantage of our improved state to fortify our balance of payments and maintain confidence in sterling.
§ Our balance of payments objectives, which I will take first, still stand. Our first objective is that the sterling area as a whole should go on being in surplus—or at least in balance—with the rest of the world. Our objective in the United Kingdom must continue to be that we earn enough not only to cover the cost of our imports and other current overseas expenditure, but also to meet our capital commitments as they arise.