HC Deb 05 May 1953 vol 515 cc195-7
31. Mr. Beswick

asked the Chancellor of the Exchequer, in making his calculations regarding total expenditure in the year 1952–53, what was the figure he allowed as the total expenditure on food subsidies during that period.

Mr. R. A. Butler

The revised Estimate for the Ministry of Food for 1952–53 assumed £309 million as the amount of the food subsidies. Adjustments in the timing of the retail price increases are largely responsible for the difference between this latter estimate and the outturn.

Mr. Beswick

Is the Chancellor aware that his right hon. Friend the Minister of Food has now been good enough to give me the simple and straightforward answer, which said that last year he spent £332 million on food subsidies? As the Chancellor plans to spend only £220 million this year, does not that show that he is saving £120 million this year on food subsidies?

Mr. Butler

The strange part about it is that I have exactly the same figure in my portfolios as that which the Minister of Food gave to the hon. Member, which is correct. The difficulty in which the hon. Member finds himself is this: he will remember that during last year we had to go down from a very much higher figure for food subsidies to the figure which I promised the House and the public, namely £250 million. We came down in due course to that figure. As I told the hon. Gentleman in a previous reply, the public benefited by the fact that the increases in the price of food were more dilatory than we had at first intended. There is no mystery about this whatever. The reduction this year is due to the new policy concerning cereals and eggs.

Mr. Beswick

I am in no difficulty at all. The difficulty is experienced by the Chancellor in explaining to the public that his tax concessions have been financed wholly out of savings from food subsidies.

Mr. Gaitskell

May we take it that the price increases which may still be expected will be limited to the £30 million, namely the difference between £250 million and £220 million?

Mr. Butler

The right hon. Gentleman can accept that the position is that which has already been stated—namely, that there were certain estimates and there was a certain out-turn, and certain figures were given by me in my Budget statement; and, as far as we can see, that remains the position.

Mr. Gaitskell

I am asking whether from now onwards we may expect price increases amounting to £30 million because of the difference between the present reduced subsidy of £250 million and the future reduced subsidy of £220 million?

Mr. Butler

That would be misleading because the policy of freeing cereals and eggs has already been adopted and does not look into the future. The figure I have given for the coming year is £220 million, or £221 million; and the round figure is £220 million.