HC Deb 15 April 1958 vol 586 c46

Now as regards expenditure. I estimate total expenditure above the line this year at £5,075 million—£155 million more than the out-turn for last year. The Consolidated Fund services will require £816 million in the coming year—£34 million more than last year's out-turn. The difference is largely due to the fact that last year's out-turn benefited, as I mentioned, from the postponement of the interest charges on the North American loans.

Supply expenditure is estimated at £4,259 million, £44 million more than the final Estimates for last year, including all Supplementary Estimates, and £121 million more than last year's out-turn. This increase on last year's out-turn is the net effect of a rise of £133 million in civil expenditure—notably in the social services—and a reduction of £12 million in Defence expenditure. The latter Estimate assumes the receipt of £47 million from Germany towards the cost of our Forces in Germany. As the Committee knows, this matter is still under discussion in the North Atlantic Treaty Organisation.

On the basis of existing taxation, therefore, total revenue is estimated at £5,490 million against expenditure of £5,075 million, giving an estimated surplus above the line of £415 million. This compares with last year's surplus of £423 million, which was, however, inflated by the £37 million of returned interest to which I have just referred.

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