I want to develop the argument further. This view has not only not been challenged, but some of our sharpest critics—and I refer to the London and Cambridge Bulletin—positively endorsed what I have just said. It wrote in January,
There appears to be no great difficulty about managing demand if the period 1972–76 is considered as a whole.
Perhaps I might add that the Government accept the broad proposition that the growth of public expenditure, in anything more than the short term, must not exceed the rate of growth of available resources unless we deliberately aim to increase the share of resources absorbed by the public sector and are prepared to face the prospect of consequential increased taxation. That is not the policy of this Government. It was the policy of our predecessors and it is clear that it
would be their policy if they ever returned to office.