§ I now come to another field in which the Government must make an effort of saving parallel to that which it is urging on private individuals. That is the field to which I made some brief reference earlier—namely, Government expenditure. We all know how difficult has been the task of effecting real economies. But let us be frank. War and the conditions following war produce a general atmosphere in which the whole idea of economy is necessarily weakened. We have got to make a new effort, and get back to the point of view that however small a saving may be it is worth making.
§ In my room at 11, Downing Street there is a picture of Mr. Gladstone, a copy of the famous Millais portrait. I am told 882 that some former Chancellors—I will not specify them—could not stand those eyes looking at them, day by day, reproachful and nostalgic. The picture was, therefore, during certain periods removed. Anyway, it is there now. We must all admit that there was a great deal to be said for the older approach. In those days, it was the expenditure that had to be justified, and not the reduction in it.
As regards defence expenditure, the net estimates for this year do not show any increase in spite of rising costs. Indeed, making allowances for the new rates of pay for the Armed Forces—which are likely to cost an extra £70 million—the real pressure of the defence bill upon our resources of manpower and materials should be smaller. Nevertheless, the task of adapting the needs of defence to new interpretations of strategical and tactical concepts must go on all the time. I am authorised by the Prime Minister to say that he and the Minister of Defence, with the other Ministers concerned, are taking special steps to ensure that the defence programme, and particularly those items most affected by recent changes in strategic thinking, are adapted to the new conditions as rapidly as possible and with maximum regard to the need for economy. I feel sure that we shall be able to find worthwhile savings as a result.
§ So far as civil expenditure is concerned, without injury to the purposes which are common to us all, I believe that there is still room for economy. Even modest economies are worth making. They can be made both in central and local government, if economy is the order of the day—if people are economy-minded. The Prime Minister announced in his Bradford speech that we are determined to make savings in administration. He put as the objective a reduction of 10,000 to 15,000 in the Civil Service. I believe that this can be achieved, and that perhaps still more can be done. Any economies, of course, whether in defence or in civil expenditure, fall into different classes; some become immediately operative; some only help us a little in the first year, but fructify later.
§ As the Committee knows, it is normally the practice for the Estimates to be discussed in the course of the autumn between Government Departments and the Treasury. They are finally settled by Ministers in the early months of the calendar year, so that they can be presented 883 to Parliament at the proper time. This year, the Government have decided that a review of all Government expenditure, civil and military, should be put in hand at once. It will be continuous and comprehensive. It is an essential part of the effort which the whole nation is asked to make this year.
§ It has often been suggested that this work should be undertaken by some outside body. There are, of course precedents for this, but I do not think that this is the right means to adopt. Ministers are responsible and they must carry their responsibility. Although there are many individual detailed matters in which outside advice can be helpful to a Minister, yet it must be the Cabinet as a whole which must take full responsibility. In any case we intend to do this work ourselves.
§ With the full approval of my right hon. Friend the Prime Minister and of my colleagues, I can say that we are determined that this economy drive should bring us, over the whole field, savings amounting to not less than £100 million in this current year on services provided for in the Estimates as published. So much for Government saving.