§ 5. Mr. Bruce-Gardyneasked the Chancellor of the Exchequer what estimate he has made of the total increase in public sector expenditure during the current financial year after allowing for the increase in pensions in November and corresponding proportionate increases in all other social security payments.
§ Mr. DiamondI would refer the hon. Member to the Answer which my right hon. Friend the Chancellor of the Exchequer gave him on 8th May.—[Vol. 783, c. 119.]
§ Mr. Bruce-GardyneHow can the Chancellor of the Exchequer know what the effect of the financing of these increases in pensions and ancillary benefits will be on the demand management of the economy until he knows how he will finance them? Would not he agree that the announced increases in public service expenditure of 1 per cent. this year and 3 per cent. next year, even if achieved, are clearly excessive?
§ Mr. DiamondMy right hon. Friend the Chancellor of the Exchequer said specifically what the increase in expenditure would be. He said that it would be £250 million, which referred to a full year. When one takes account of the proportion affecting the first year, that is the figure included in the public expenditure provision for which the 1 per cent. is the increase already announced.