Public Expenditure

Part of the debate – in the House of Commons at 12:00 am on 17 March 1977.

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Photo of Mr Robert Sheldon Mr Robert Sheldon The Financial Secretary to the Treasury 12:00, 17 March 1977

Oddly enough, the hon. Gentleman does not seem to realise that the expectations of investment by all those predominantly concerned have been improving. The very necessary condition for industry to invest is that it can obtain the funds at a rate which it can afford so that it can invest in manufacturing industry. In fact, the forecast mentioned by the Chancellor, and supported by the CBI survey, which I shall deal with shortly, showed that private manufacturing investment in the second half of this year compared with the second half of 1976 was expected to grow at a rate of about 19 per cent.

The CBI survey of 8th February confirmed the investment intentions of those whom it had asked and positively endorsed the Chancellor's forecasts. On a different base period, the survey estimated that the increase in investment over 1977 as a whole compared with 1976 as a whole would be between 10 per cent and 15 per cent.