§ The Chancellor of the Exchequer (Mr. James Callaghan)I shall use, as a Chancellor must, the instruments I have to hand. Among these are taxation and the control of public expenditure. These instruments will be used positively as well as negatively. For example, the Government have recently offered financial and other support to the British computer industry because it is vital to the new technology. We are ready and anxious to work with industry in a joint effort to 245 cut out dead wood and to raise efficiency. I should like to say to all who work in industry at whatever level that our aim is that those who earn high rewards through skill and enterprise should enjoy the berefit of them—but they must be earned.
In my own particular field of responsibility, we need a pattern of taxation serving the requirements of a modern and dynamic economic policy. It must, moreover, be seen to be fair. I shall be taking a long step forward in this Budget; but much has still to be done. I propose to carry out year by year a systematic and comprehensive review of every aspect of our tax system. I can foresee a programme of reform stretching years ahead.