§ Payments below the line will show an increase. Before I give the figures it might be convenient if I mention the provision of capital for the nationalised industries. Since 1956, as the Committee knows, the capital needs of the nationalised industries have been met by loans out of the Exchequer. The powers authorising these loans—which originated in the Finance Act, 1956— 38 expire at the end of August of this year and I have to consider how the industries' requirements are to be supplied after that date. The considerations of credit and market management which led to the assumption by my right hon. Friend the Prime Minister of direct Exchequer responsibility are still as strong as ever. I have, therefore, decided again to recommend that the powers should be extended for a further period of one year. The extension of the Exchequer lending power, for which I propose to move a procedure Resolution, will provide for additional lending of £550 million to take account of the enlarged investment programmes which the Government have authorised.
§ The estimated figures for payments below the line are as follows. Twenty-eight million pounds more than last year will be needed for the operations of the Export Credits Guarantee Department, mainly for loans, and I expect to provide for the first time £20 million for advances to Colonial Governments and £25 million for loans to building societies under recent legislation. The National Coal Board will need £2 million more than last year and £6 million less is being provided for the British Transport Commission for railway deficits during the current year. Other capital advances from the Exchequer to the nationalised industries will be £138 million higher than last year. I am not making any provision for loans to local authorities since, even if the rate of borrowing from the Public Works Loans Board is higher than last year, the volume of repayments should keep an adequate balance in the Local Loans Fund without further advances from the Exchequer. Repayments by the nationalised industries and other borrowers are expected to produce £22 million more than last year. In total, I expect the net total of payments below the line to be £752 million, that is, £193 million higher than it actually was last year.
§ On the basis of existing taxation the surplus above the line in the coming year is, therefore, estimated at £397 million and the net total of payments below the line at £752 million. This would leave net expenditure of £355 million to be met by borrowing, as compared with £182 million last year.