HC Deb 07 April 1959 vol 603 cc64-5

To sum up, the tax changes I propose will cost £295 million this year and leave an estimated surplus above the line of £102 million. In addition, the proposals for additional repayment of post-war credits will cost £71 million extra below the line. These changes will leave the sum to be met by borrowing at £721 million. This is a large figure, but I am satisfied that, in our present economic circumstances, it represents the right balance between taxation and borrowing and the right figure from the point of view of the balance of the economy, too. Behind us is a year of solid achievement. Our economy is stronger and more firmly based than at any time since the end of the war. We have the opportunity now to resume a steady rate of advance—not full steam ahead but steady ahead with confidence.

This is no spending spree Budget. During the last two years, we have had the highest level of personal savings in our history. There is now room in the economy for more production. This should give us room for rather more personal spending. But, even more, I want to encourage the continuance of a high level of saving because on that the growth of investment and our whole future welfare depends.

I believe that the measures I have proposed in this Budget will bring benefits. directly or indirectly, to every section of the community, and will give an invigorating stimulus to the economy which will encourage us as a nation to make the most of the opportunities that lie before us.