§ 6. Mr. Canavanasked the Chancellor of the Exchequer what representations he has received about the contents of the forthcoming Budget; and if he will make a statement.
§ 8. Mr. Nicholas Wintertonasked the Chancellor of the Exchequer what recent consultations he has had with organisations representing smaller business in formulating his Budget judgment.
§ Mr. HealeyI have received representations from a large number of individuals and organisations and am considering these in formulating my Budget. The House will not expect me to make any further comment at this stage.
§ Mr. CanavanInstead of imposing the savage cuts in public expenditure which are being demanded by the Tories and by the Treasury bureaucrats who have consistently overestimated our public sector borrowing requirement, will my right hon. Friend try to increase public expenditure in order to improve the essential services, to create more jobs and to improve essential items such as child benefits and retirement pensions?
§ Mr. HealeyMy hon. Friend will know that the Government are planning to increase public expenditure this year. The House approved our plans last Monday. I do not think that it is fair to accuse the forecasters in the Treasury or elsewhere of consistently overestimating the PSBR. They underestimated it by £4,000 million in 1974.
§ Mr. WintertonWill the Chancellor tell the House what specific organisations representing small business he has seen recently in the course of formulating his Budget proposals? Does he agree that smaller business can be the section of industry that will help to solve the unemployment problem? Does the right hon. Gentleman agree also that smaller business very easily suffers cash flow difficulties and that he should therefore not lightly propose to the House an increase in national insurance contributions, which could be very damaging to the potential of smaller business?
§ Mr. HealeyI have noted the hon. Gentleman's comments. He will not expect me to comment on my proposals in the forthcoming Budget. I assure him, however, that I attach great importance to the health and efficiency of small business. That is why the Government have made a large number of concessions to that sector in the last year—concessions which were not made by the previous Government.
§ Dr. BrayTo remedy the omission of my hon. Friend the Member for Southampton, Test (Mr. Gould), and while, of course, observing the convention that my right hon. Friend the Chancellor never mentions the exchange rate, may I ask my right hon. Friend whether he agrees that, as he prepares his Budget proposals, he is somewhat relieved to see that the pound has eased a little?
§ Mr. HealeyI do not think that anyone can accuse me or my hon. Friend the Member for Southampton, Test (Mr. Gould) of never mentioning the exchange rate. As I have said on many occasions in the House, I believe that a stable exchange rate is of great advantage to this country. I am pleased to see that the CBI has shifted its view on this matter and that it now regards stability in the exchange rate as a better thing for British business than attempting to solve problems by depreciation.
§ Mr. Peter ReesWill the Chancellor of the Exchequer tell the House whether he has received representations from groups of taxpayers who are represented by trade unions for forgiveness of their existing tax liabilities in his forthcoming Budget?
§ Mr. HealeyNo. Sir.
§ Mr. HoyleWill my right hon. Friend introduce an expansionist Budget—lowering the interest rate and introducing meaningful import controls? If he does that he could be capped in the role of Father Christmas.
§ Mr. HealeyThe House will note that we have recently reduced the minimum lending rate. Market rates are now about 3 per cent. lower than they were a month ago. I hope that the process will continue. I shall consult my barber on the question of Father Christmas.
§ Mr. HigginsIt is now apparent that the Inland Revenue broke with precedent in negotiating with trade unions a general tax amnesty for casual workers in Fleet Street. Will the Chancellor take account of representations that section 1 of the Taxes Act 1970 should be altered to limit the discretion of the Inland Revenue to give group amnesties?
§ Mr. HealeyI shall take account of all representations that are made to me.