HC Deb 27 February 1968 vol 759 cc1202-3
6. Mr. Ridley

asked the Chancellor of the Exchequer what steps he proposes to take to keep the net borrowing requirement within the figure raised net by market transactions in 1968– 69.

Mr. Roy Jenkins

I cannot anticipate my Budget Statement.

Mr. Ridley

Would not the Chancellor agree that if he could borrow all of the borrowing requirement he could reduce taxation by £ 800 million or £ 900 million? Has he not, therefore, to take very seriously means of making people save, such as abolishing the unearned income distinction and punitive taxes on investment income?

Mr. Jenkins

I assure the hon. Gentleman that I take very seriously a great number of considerations in framing my Budget Statement, but I would not necessarily accept that all the hon. Gentleman's conclusions follow from his premises.

Mr. Cant

Will my right hon. Friend accept, at any rate for the future, that unless he limits his net borrowing requirement to real savings this will have an inflationary tendency within the economy which will have a serious effect on the effectiveness of monetary policy, and that that is a factor which may lead him to consider reintroducing a statutory incomes policy?

Mr. Jenkins

I am certainly aware of some of the dangers to which my hon. Friend refers, and I take them fully into account.