Budget

HC Deb 20 March 1980 vol 981 cc618-20

3. Mr. Canavan

asked the Chancellor of the Exchequer what representations he has received about the forthcoming Budget.

8. Mr. Trippier

asked the Chancellor of the Exchequer what representations he has received in connection with his forthcoming Budget.

Sir Geoffrey Howe

I have received representations from a wide range of organisations and individuals.

Mr. Canavan

In view of today's news that Barclays Bank made an annual profit of £529 million, which is 42 per cent up on the previous year, will the Chancellor introduce a windfall tax to give some benefit to the whole community from the excessive profits made by the big banks and oil companies? Would not that be more humane than turning the clock back to the 1930s by stopping earnings-related unemployment benefit and cutting the real value of other benefits to the unemployed, the disabled the sick and families with young children?

Sir G. Howe

I cannot anticipate my Budget Statement in any respect, as the hon. Gentleman should know. The increase in bank profits substantially overstates the real growth by the time one has taken account of inflation, a phenomenon with which the hon. Gentleman is familiar. When other circumstances are going badly it is usual for bank profits to rise. It is important that they should be high to meet the demands that are made upon them.

Mr. Trippier

Will my right hon. and learned Friend, when preparing his Budget, remember that people on low earnings suffer most from the high level of inflation as was proved under the last Government? Will he also remember that we must honour our election pledge to serve all the people?

Sir G. Howe

I am grateful to my hon. Friend for his reminder of a pledge which we certainly mean to fulfil. I am pleased to know that we shall have his support in the Lobby throughout the difficult time ahead.

Mr. Healey

Futher to that extremely helpful supplementary question, can the right hon. and learned Gentleman assure the House that he will not cheat on the Government's election promise to help families and to increase the will to work? Will he assure the House that he will increase the child benefit in November by significantly more than £1 per week? Does he agree that anything less would be dishonest in relation to the undertakings which the right hon. and learned Gentleman gave when he tricked the British people into giving him a majority last May?

Sir G. Howe

Even in that respect I cannot anticipate my Budget Statement. I assure the right hon. Gentleman that neither before nor after that Statement shall I need his advice or guidance on cheating.

Mr. Forman

Can my right hon. and learned Friend confirm that among the representations that he has received concerning his Budget is one from the Child Poverty Action Group? Will he take note of the views of hon. Members, particularly his hon. Friends, that we understand and expect that there will be a substantial increase in child benefit in his Budget?

Sir G. Howe

I can confirm that I have received representations from the CPAG, as one would expect, and I have them in mind.

Mr. Jay

What does the Chancellor feel is the greatest success of his policy to date?

Sir G. Howe

An increasing confidence in the firmness of the Government's monetary and fiscal policies and a mounting sense of shock among the electorate at the prospect of the Opposition coming to power.