HC Deb 18 February 1969 vol 778 cc70-1W
73. Mr. Barnett

asked the Chancellor of the Exchequer by what authority he ensures that the banking system complies with his requests to curtail lending within limits he lays down.

Mr. Harold Lever

Under the Bank of England Act, 1946, the Bank of England has powers subject to Treasury authority to make recommendations and give directions to bankers. It has never been necessary to use these powers. The banks have always co-operated voluntarily with the authorities' requests, and I believe that they will continue to do so.

Mr. Barnett

asked the Chancellor of the Exchequer what is his estimate of the amount of increased taxation needed for 1969–70 to have the same effect on consumption as the estimated effect of the banks bringing their total lending down to £250 million by which they are above the ceiling set by him.

Mr. Harold Lever

I would refer my hon. Friend to the Written Answers I gave him on 11th February.—[Vol. 777, c.272.]