§ I propose this year to deal very briefly with the Government's financial accounts. The essential figures are set out in the Financial Statement and Budget Report, as it is now called, which I have expanded and re-arranged in a way which I hope will be helpful to the House. The out-turn figures are given in the Blue Paper. I think it is easier for hon. Members to study them there than for me now to go through them in the traditional but largely incomprehensible way.
§ But there are a few figures which I should like to draw to the especial attention of the House. First, the borrowing requirement of the Central Government in 1968–69 was minus £281 million. That is to say, on all our accounts we were in credit, and we repaid substantial debt to the market. So much for all the fuss about my predecessor's Letter of Intent.
§ In 1969–70 the prospects are for an even greater repayment of debt by the Government. Indeed, the accounts of the whole public sector show that not only is the borrowing requirement of the Central Government substantially negative, but that the aggregated borrowing requirement of Central Government, local authorities, nationalised industries and other public corporations will also be negative.
§ This means that the public sector will be making no net demand at all on 1007 private savings in the coming year. Even if I had no increases in taxation to propose, the repayment by the Central Government would be £537 million. But as I have just told the House, it is necessary to take further measures to restrain consumption, as a result of which the repayment of debt will substantially exceed this figure. I will shortly give the House details of my proposals, but before doing so I should like to say something about monetary policy, since this provides an essential support to fiscal policy.