Orders of the Day — Budget Proposals

Part of the debate – in the House of Commons at 12:00 am on 8 April 1954.

Alert me about debates like this

Photo of Mr Ivor Thomas Mr Ivor Thomas , The Wrekin 12:00, 8 April 1954

Public opinion generally is that the Government have had about the most difficult week, the worst week, of their existence. Following the display of the Prime Minister on Monday, we have had a Budget speech that is probably the most sterile and barren Budget speech in history. There were great expectations, but the realisation has been very small. Great disappointments have been felt throughout the community. To a very large extent the Government themselves are responsible for this trend in public opinion.

The Economic Secretary today dared to quote from certain sources in proof of what he seemed to be arguing, that there had been general acclamation and praise of the Budget and the general policy the Chancellor outlined. All I can say is that he can be satisfied with very small rations, because anyone who surveys the Press commentary on the Budget speech will be forced to one conclusion, and that is that the Budget has had the most hostile reception of any Budget since the end of the war. There should be no surprise about that, because in the months leading up to the Budget the spokesmen of the Government seem to have induced the public to generate in their minds expectations of something big, something generous and something for everybody. But that something generous, something big and something for everybody is conspicuous by its absence.

If any criticism is to be leveled at the general financial policy of the Government since they came into office, it is that in their earlier proposals and first Budgets they dissipated the assets and misused what they could accumulate in their early period of office. Now, after a year that has been more disappointing than the Government expected, the Chancellor finds that he has almost nothing in the kitty, so those who are waiting must go away empty-handed.

But what the Chancellor has done with what little he had available has been the wrong thing. He has given, not to those in need, but to those who already have sufficient. If the Chancellor, in framing his Financial Statement for guidance on the national economy, has any responsibility of a primary nature, it lies in giving to those of the community who need most the assistance that is available.

What did the Chancellor do 12 months ago, when he did have a surplus to disburse? He gave the main portion to those who already had ample. He gave a reduction of taxation benefiting primarily those who were in receipt of the biggest incomes. If instead he had harboured his resources a little longer, he would have had them available this week to give a little more where it is most needed—to the old-age pensioners and to those dependent upon small fixed incomes, the old-age pensioner before everyone else.

The Chancellor said some sweet words to the old-age pensioners and sent them away empty-handed. Everyone expected that he would at least try to do something for the old-age pensioners. He has done absolutely nothing. He has simply given them pity and sent them away with words. Read any comments from those who are responsible for putting forward the case of the old-age pensioners. There is no doubt about what they think of the Government and of the Chancellor in refusing to help those most in need. Is that surprising? I will leave it to others who can also judge these things for themselves.

Some Government supporters belong to the "treat them rough" school. I read these words in one of yesterday's evening papers: Mr. Assheton gave his opinion of the Budget: 'Disappointing'. And then further down someone else said these words: When I was younger I had a slogan: Treat them mean and make them keen. Who said those words? Is any hon. Member opposite prepared to guess? Would they be surprised to know that those words were spoken by a member of the Government? Those words are reported in the "Evening Standard" as having been stated by the present Minister of Works, who also said: It served me well. I think it is also true politically. The British people don't want to be nambie-pambied. I think most People approve of the Budget. Incidentally, it goes on to say that he was one of the few men who wore a butterfly collar with his dinner jacket.

The Government have certainly treated the old-age pensioners meanly. Prices have gone up and the cost of living has continued to increase. The income of the old-age pensioners has remained at its previous level and there has been no adjustment for them. Any adjustment which the Government have made has been to the advantage of those with the higher incomes. Last year's Budget gave millions of pounds away in the form of relief of Income Tax to those favoured few who are already in receipt of more than enough for their personal requirements. The contention was that in doing that it would give a spurt to investment. Has that happened? Hon. Members should read the Economic Survey, and they will see that the increase in investment had not covered in any way the total amount of relief given in last year's Budget.

One of the complaints of the Government and of all economists is that not enough investment or new capital is going into industry. As was rightly said by my hon. Friend the Member for Islington, North (Mr. Fienburgh), in this country since the war the main investment has been made by the boards running the publicly-owned industries. If we deducted the total of investment for which those public bodies have been responsible over the last few years from the total investment made, there would be only a small amount remaining to the credit of private capital in industry.

And so the sorry tale goes on. The people of this country can judge properly the ability and consistency of members of Governments. I make this prophecy, that if the Government dare to go to the country within the next 12 months they will be thrown out head over heels. The people of this country elected this Government, admittedly with only a small majority, on the understanding that they had a programme, that they would set the people free, that they would make the people prosperous. Have they had a programme? Have they set the people free? Have they made them more prosperous? Have they put into operation their great economic programme? No, all they have done has been to remove whatever principles of guidance and planning had already been put into the national economy by the Labour Government between 1945 and 1950.

What is the argument? They say they want to take steps to place this country in a position in which it will be able to face what they call a recession. That is another word for mass unemployment caused by a falling off in effective demand. It is a condition in which there is plenty of wealth but no effective distribution. Where does recession come from? Recession, mass unemployment, does not occur in a planned economy. And when this Government talk about the danger of a recession, where do they look? To the United States of America, to the biggest single private capital economy in the world. Because of the complete lack of control in that American economy, they are afraid that any recession, any falling off of demand, will have its inevitable effect on the economy and prosperity of this country.

So what do they do? Do they plan, do they prepare for it? No, they throw away all the controls they can, and they try to revert to what they call a free economy. If that American recession comes, ultimately they will find themselves in the same position as this country was in 1931 when there was still a capitalist economy here, even though there was a minority Labour Government.

We listened to the hon. Gentleman the Member for Orpington (Sir W. Smithers) churning out his usual stuff about half an hour ago. The hon. Gentleman seemed to be arguing that, if we were in the same economic and political situation as we were 50 years ago, everything in the garden would be lovely, and that all we want is a succession of Tory majority Governments which, sooner or later, will establish conditions that will give prosperity to everyone in the country. What a lot of mental rubbish. If we do not have planning in a household, ultimately we come to ruin, and if we do not have planning and some idea of what we are trying to do in a national economy, consciously led by a Government with ideas on the matter, we come inevitably to recession—to mass unemployment.

We on this side of the Committee do not wish to see the people of this country again go through the hell of depres- sion, which was their lot in the years between the two wars and before. The sooner the Government give the electorate another opportunity to decide how it wishes to be governed, the better for the country and the world as a whole. I have no doubt that when they take that step we shall have another Labour majority Government in control of the destinies of this country.