HC Deb 24 May 1973 vol 857 cc644-5
6. Mr. Knox

asked the Chancellor of the Exchequer what is his most recent estimate of the rate of growth.

25. Mr. Tom King

asked the Chancellor of the Exchequer what is his estimate of the current rate of growth in gross domestic product; and how this compares with the average rate of growth between 1964 and 1970.

The Chancellor of the Exchequer (Mr. Anthony Barber)

As in the Budget forecast, around 5 per cent. per annum over the 18 months to the second half of 1974, which is more than twice the rate of growth between 1964 and 1970.

Mr. Knox

Will my right hon. Friend confirm that the statement he made on Monday in no way conflicts with the Government's growth rate target of 5 per cent.? Will he further confirm that it is the Government's intention to pursue a very high growth rate over a long period to give industry the necessary confidence to invest at a much faster rate than before and so increase the rate of increase in the capacity of the economy?

Mr. Barber

The forecast of the rate of growth over the period to which I referred in the Budget Statement remains, and certainly, as I said on Monday, nothing has happened to cause me to change that forecast other than the fact that exports are doing better than I expected at the time of the Budget. As for the period beyond, I made clear on Monday that one of the principal purposes of the public expenditure changes was to ensure that we can continue to expand at a fast rate of economic growth during the period 1974–75 and beyond.

Mr. Joel Barnett

The House will have noted with interest the Chancellor's statement about growth up to the interesting date of the middle of 1974. Will he tell us a little more about his plans after that date? Instead of what he told his hon. Friend, will he tell us whether, in making his cuts the other day, he had in mind a much lower level of growth after the middle of 1974?

Mr. Barber

I though that I had dealt with that question. Perhaps I can repeat the answer for the hon. Gentleman's benefit. One of the principal purposes of the changes in public expenditure that I announced on Monday was to ensure that we could continue with a fast rate of growth and that we did not repeat the intolerable situation that the hon. Gentleman and his party got into, when they had to slam on the brakes and had one of the most appalling rate-of-growth records of any Government in our history.

Mr. Dalyell

Are we sure that growth should be the be-all and end-all in connection with the public expenditure changes? Is not the Chancellor pennywise and pound-foolish to bring to an end Operation Eyesore, which might not be measured in growth terms but which did a great deal for Scotland and the north of England in cleaning up of the landscape and buildings?

Mr. Barber

I can quite understand Opposition Members thinking that the rate of growth of the economy, and so the prosperity of our people, is not necessarily the primary aim of government. For us, it certainly is.