HC Deb 27 February 1968 vol 759 cc1211-2
19. Mr. Alfred Morris

asked the Chancellor of the Exchequer what reply he has sent to the communication, entitled "The Budget 1968", which he has received from the Confederation of British Industry; and if he will make a statement.

78. Mr. Hiley

asked the Chancellor of the Exchequer what proposals he has received from the Confederation of British Industry in relation to his forthcoming Budget Statement; and what reply he has sent.

Mr. Roy Jenkins

I received representations from the C.B.I. about the Budget, which the C.B.I. has since made public. At my invitation representatives of the C.B.I. had a meeting with me last week at which they elaborated on their representations. I told them that I would bear their suggestions in mind when framing my Budget proposals.

Mr. Morris

Would not my right hon. Friend agree that, while the C.B.I. is asking for reductions in Surtax and for a wage freeze, it is not for that organisation to be advocating an increase in the burden of indirect taxation? Will he make it clear, before the meeting of trade union executives at Croydon tomorrow, that he utterly rejects the advice of the C.B.I.?

Mr. Jenkins

No, Sir. I have no intention at this stage or any other before 19th March of indicating that I am either accepting or rejecting advice from the many sources from which it comes to me and from the many people whom I have told that I am bearing their advice in mind.

Mr. Hiley

Will the right hon. Gentleman consider the impact of the C.B.I.'s suggestions on the ability of the nation to export? Is it not better to put a tax on spenders than a tax on those who save?

Mr. Jenkins

I will consider all these points.

Mr. Heffer

Does not my right hon. Friend agree that, if the advice freely tendered by the C.B.I. were accepted by him, it would mean complete surrender to the Conservative position? Although he cannot at this stage give an undertaking about this, will he nevertheless make certain that he resists this advice very strongly? Let us hope that on Budget day we shall know the answer.

Mr. Jenkins

My hon. Friend will know that today I am in a mood to consider everything and agree to nothing.