HC Deb 18 April 1967 vol 745 cc290-1
21. Mr. Ridley

asked the Chancellor of the Exchequer what is the estimate of central and local government expenditure, excluding debt interest, but including net lending to public corporations, for 1967–68.

Mr. Callaghan

£14,893 million.

Mr. Ridley

Is the Chancellor aware that, even if he gets his 3 per cent. increase in growth this year, this will represent the highest proportion of our national product being taken by the central and local government in all our history? Is this the reason why his party's policies seem to be failing? Will he reverse this trend?

Mr. Callaghan

One day I hope to educate the hon. Member into seeing that public spending is not bad and private spending is not necessarily good. It depends on what it is spent on. That is what matters.

27. Sir J. Langford-Holt

asked the Chancellor of the Exchequer what estimate he has made of the effect which the steady rise in the expenditure of central and local governments will have on inflationary pressure in the economy.

Mr. Callaghan

I would refer the hon. Gentleman to my Budget statement.—[Vol. 744, c. 990.]

Sir J. Langford-Holt

Would the Chancellor agree that it is not a question of private expenditure being bad and Government expenditure being good, but that this increase is taking place in a sphere which by its very nature does not contribute in a major way towards exports, which is his main problem?

Mr. Callaghan

I think that is a fair point. That is why I am very anxious to see private investment grow, because it is in that sector—private investment is about 27 per cent. of the total—that increased exports would come. I certainly accept that point.

Mr. Patrick Jenkin

If the Chancellor intends, as he said in his Budget Statement, to make room for the expected increase in private investment expenditure, what Government expenditure will he—to use his own words—rein back in order to make this improvement?

Mr. Callaghan

I do not want to continue last night's Budget debate now.