HC Deb 05 May 1959 vol 605 cc28-9W
Mr. Iremonger

asked the Chancellor of the Exchequer how much of the net sum borrowed or met from surplus in 1958–59, namely, the outturn of £559 million given in Table XIV of the Financial Statement, was borrowed; how much of this borrowed sum was represented by savings; how much was borrowed in respect of each type of savings; how the Exchequer was financed in respect of the balance; what effect he estimates this financing of the balance had upon the creation of additional bank deposits and upon the money supply in the economy generally during the year; and whether he will arrange to publish this information in this particular form in future.

Mr. Simon

Of the £559 million, £377 million was met from the surplus above the line and £182 million was met from borrowing. The various components of the the total sum borrowed in the year, including the amounts required to repay maturing debt, are given in Tables III and IV of the Financial Statement. As regards the effect of Exchequer financing on the position of the banks and the money supply, I would refer my hon. Friend to my right hon. Friend's Budget speech. As regards regular publications on this subject, I think my hon. Friend will find that most of this information is already given in the Financial Statement, the various Exchequer returns and the monthly figures published by the Clearing Banks.

Mr. Iremonger

asked the Chancellor of the Exchequer, with regard to the financial year 1959–60, how much of the net sum estimated to be borrowed or met from surplus, namely, the estimate of £823 million given in Table XIV of his latest Financial Statement, he expects to meet from surplus, savings and other methods of financing the Exchequer, respectively; and what effect he anticipates this will have upon employment, inflation, the level of prices and the welfare of those living on small fixed incomes, respectively.

Mr. Simon

As the Financial Statement shows, my right hon. Friend estimates the above the line surplus in 1959–60 at about £102 million, leaving £721 million of the £823 million to be met by borrowing. I have nothing to add to what my right hon. Friend said in his Budget statement and in his winding-up speech on 13th April on the probable means of meeting these requirements or on the effect of such operations on the economy.