§ Before I turn to the prospects for the future, I must refer to the Government's financial accounts. Hon. Members will find these set out in some detail in the Financial Statement and Budget Report, so I will be brief.
§ The estimates for 1970–71 were for a central Government surplus of £619 million and a public sector surplus of about £250 million. The estimated out-turn figures for 1970–71 show that the central Government is still in surplus to the extent of £51 million, but that the public sector has a deficit of £617 million.
§ One reason why the central Government surplus was considerably smaller than expected was the fact that receipts from corporation tax were less than forecast, partly because of the 2½ per cent. cut that I announced last autumn. Another factor was that lending to public corporations was greater than expected. Finally, the figures have been considerably affected by a backlog of receipts as a result of the Post Office strike. It is estimated that some £260 million, which would normally have been received in the current year, will not now arrive until 1971–72. The overall figure for the public sector was affected also by an increase in local authority expenditure, the greater part of which was due to pay and price increases.