§ Below the line, however, the position has turned out rather differently. Total payments below the line were £836 million, £185 million less than was estimated; receipts were only £3 million below the estimate. The deficit was thus only £621 million, compared with an estimated £803 million. The main contribution to this saving was a substantial decline in the provision of capital for local authorities. Against an estimate of £220 million for this purpose, issues have had to be made of only £109 million. These figures reflect the successful application of sound financial principles to the capital expenditure of the local authorities. The authorities attract savings by borrowing in the market as far as possible, and they now pay the market price for their capital, whether they raise it from the market or from the Exchequer. I shall press forward with this policy in the coming year. I realise that the market cannot meet all the requirements of the local authorities, but I shall continue to rely on the sound judgment of the Public Works Loan Board to prevent any un-necessary demand on the Exchequer.
§ Net Exchequer advances to the National Coal Board amounted to £26 million, £37 million below the estimate. This does not mean that the rate of investment in coal was reduced, but that the Board was able to finance rather more of its investment from its own resources. Last year's Finance Act provided that the Exchequer should supply the capital needs of the other nationalised industries for the two years ending 31st March. 1958. My right hon. Friend estimated that in 1956–57 issues of about £350 million might be required for this purpose. In the event, £284 million have been advanced under the Finance Act and £52 million under the new Transport (Railway Finances) Act, making a total of £336 million for this group of industries.