HC Deb 07 March 1967 vol 742 cc1236-7
10. Mr. Channon

asked the Chancellor of the Exchequer what proposals he now has for reflating the economy.

48. Mr. Dickens

asked the Chancellor of the Exchequer if he will make a statement on the reflation of the economy.

49. Sir C. Osborne

asked the Chancellor of the Exchequer in view of the lack of confidence now felt in many sections of trade and industry and the depressed balance sheets being reported, when he proposes to take steps to reflate the economy; what will these steps be. how long they will take to become effective; and what effect they will have on his plans to strengthen sterling.

Mr. Callaghan

I cannot anticipate my Budget statement.

Mr. Channon

Does that reply mean that the Chancellor hopes to make some progress towards this end in his Budget statement?

Mr. Callaghan

No, Sir. It means that I cannot anticipate what I shall say on 11th April.

Mr. Dickens

Notwithstanding that reply, does my right hon. Friend accept the view of the London and Cambridge Economic Service that the loss to the British economy in 1967 caused by the Government's policy of deflation will amount to £1,000 million, in terms of lost output? If so, does not he agree that this is a most shortsighted and socially undesirable way of solving a phoney balance of payments crisis?

Mr. Callaghan

No, Sir.

Mr. Hordern

Does the right hon. Gentleman look for a fall or an increase in productivity this year?

Mr. Callaghan

An increase in productivity.