HC Deb 21 March 1974 vol 870 cc1299-300
1. Sir Anthony Meyer

asked the Chancellor of the Exchequer what is his estimate of the total cost to public funds of the new proposals for public expenditure announced in the Gracious Speech.

The Financial Secretary to the Treasury (Dr. John Gilbert)

I must ask the hon. Gentleman to await my right hon. Friend's Budget Statement.

Sir A. Meyer

Is the hon. Gentleman aware that if his right hon. Friend hopes to finance even a large part of this "drunken sailor" expenditure by a wealth tax, he will find not only that he has added colossally to net demand, but also that he will be unable to do so without producing bankruptcy among a great many family businesses and without also leading to the break-up of any farm large enough to be viable?

Dr. Gilbert

It is not for me to comment on what taxation proposals my right hon. Friend may introduce next week. As for expenditure, a great many of the proposals appeared in outline in that admir- able document the Labour Party's election manifesto, the reception of which has resulted in the present composition of the House.

Mr. Higgins

May I congratulate my successor on his appointment? On the general point, will he give the House an assurance that the figures for each of the Government's expenditure proposals will be made available in time for the Budget debates, since they are clearly necessary for reasonable discussion of taxation changes?

Dr. Gilbert

I am grateful to the hon. Gentleman for his kind remarks. So far as possible, the figures will be made available, but some of them will depend on questions of timing, decisions on which have not yet been made.

Mr. Horam

Has my hon. Friend any estimate of the effect on inflation of the previous Government's failure to cover their inflated public expenditure with adequate compensation?

Dr. Gilbert

We have not bothered to go into such exotic exercises as my hon. Friend suggests. Unfortunately, the costs of it are with us already and will be with us for many months ahead.

Mr. Hordern

Will the hon. Gentleman say how the cost of freezing council house rents will be paid for—whether through the rates or through Government subsidy?

Dr. Gilbert

Once again, I have to ask the hon. Gentleman to wait for my right hon. Friend's statement.