§ 28. Mr. Fletcher-Cookeasked the Chancellor of the Exchequer if he will alter the accounting procedure applicable to hospital boards and other Government agencies which at present induces them to spend more money before 31st March in any year than they would otherwise choose to spend.
§ Mr. DiamondI have had a study made of this question and am satisfied that there must be surrender of unspent balances to ensure Parliamentary control of expenditure. The system of control of public expenditure includes checks to counteract any tendencies to extravagant spending at the end of the financial year.
§ Mr. Fletcher-CookeDoes not the right hon. Gentleman know—and if not, any contractor will tell him—that there is an immense amount of expenditure accelerated between January and March every year in order to get within an accounting system which apparently encourages rather than reduces public expenditure?
§ Mr. DiamondThe mere fact of acceleration of expenditure by itself does not necessarily give rise to extravagance. The accounts have to be signed, sent in and billed and the goods delivered before expenditure takes place, and most of those activities are outside the control of the spending authority.