§ 20. Mr. Bruce-Gardyneasked the Chancellor of the Exchequer what is his latest estimate of the percentage increase in public sector expenditure in money terms during the current year.
§ Mr. DiamondFigures in money terms are not yet available but as my right hon. Friend said in reply to my hon. Friend the Member for Caerphilly (Mr. Fred Evans) on 2nd December, the latest estimate of public expenditure for the current year at 1968 Survey prices is £15,718 million, which is an increase of 4¾ per cent. as in Cmnd. 3515.
§ Mr. Bruce-GardyneHow does the right hon. Gentleman reconcile the Chancellor's constant reiteration that public spending growth is on target with the enormous increase in local authority borrowing announced this morning? Is it not about time that the right of local authorities to borrow at an effective rate of 4½ per cent. for housing should be rescinded? What does Mr. Goode have to say about this?
§ Mr. DiamondIf the hon. Gentleman wants a serious answer to a question about local authority housing, perhaps he will be good enough to put one down. All matters of local authority expenditure were taken into account for the estimate I have just given.
§ Mr. MolloyDoes my right hon. Friend agree that many of the suggestions by hon. Members opposite for cutting public 233 expenditure would mean this country eating its seed corn, for which it would pay very clearly in future?
§ Mr. DiamondI will bear that in mind. My hon. Friend will also recollect that most of the suggestions made by hon. Members opposite are for increases in public expenditure.
§ Mr. HigginsAre the figures given by the right hon. Gentleman consistent with those in the Financial Statement?
§ Mr. DiamondCompletely consistent.