§ Q3. Mr. Kenneth Lewisasked the Prime Minister what recent representations he has had about the need to cut Government expenditure; and if he will now issue instructions to all Ministers to do this.
§ The Prime MinisterI would think that very many, if not all, of the business men concerned feel that they are contributing greatly to helping the solution of the nation's economic problems and to helping to get done on a national scale some of the things on productivity and on exports which so many of them are doing in their own firms.
§ Following is the information:
§ The Prime MinisterLike all hon. Members I receive a number of representations some urging cuts more urging increases in Government expenditure. So far as expenditure in 1967–68 is concerned, Departments have been instructed to be rigorously selective in their choice of services for inclusion in the Estimates which my right hon. Friend will be laying before the House in due course. For later years, public expenditure will be reviewed as part of the planning operation announced by my right hon. Friend the First Secretary on 10th November.
§ Mr. LewisBut will the Prime Minister translate those mere words into action? The Chancellor of the Exchequer announced this afternoon that there was 1145 a very serious increase in the numbers employed in central and local government. Everyone knows that Government expenditure is rising. Is it not time that the Government practised what they preach to other people?
§ The Prime MinisterWe are carrying out the words that I have said in practice, but the hon. Gentleman will surely wish to await the publication of the Estimates before he comments on them.
§ Mr. HeathCan the Prime Minister tell us whether it is still the Government's intention that Government expenditure should be permitted to increase by 4½ per cent. a year in real terms, and will the Government adhere to that?
§ The Prime MinisterIn terms of 1964 prices, that is our general policy. The right hon. Gentleman will have to wait until he sees the Estimates before he can appreciate how far it is possible in any year to hold to that figure. In particular, he will be aware of the fact that, in any year, commitments will have been made two, three, or even four years earlier which it is impossible to cut without loss. We have made a number which have been running from previous years and have faced great controversy in this House as a result.