§ 41. Sir C. Osborneasked the Chancellor of the Exchequer if he is aware that the nation is still not living within its income; what are the main reasons for this; what new steps he proposes to take to achieve this end; and if he will make a statement.
§ Mr. CallaghanThe facts about the balance of payments have been published and are well known but they cannot be too frequently repeated. However, we have made good progress towards our objective of eliminating the deficit by the end of 1966, and if I judge that further measures are required to reach that objective, I shall take them.
§ Sir C. OsborneDoes the Chancellor remember that about a year ago he promised that he would try to make the nation live within its means? Why has he so far failed to achieve that objective?
§ Mr. CallaghanThe answer is, I think, that we have not yet got there, because we set ourselves a two-year target—[Interruption.] I said "a two-year target"—to eliminate the deficit. There is a very good prospect that by the end of this year, certainly on our current account, we shall be in balance.