NATIONAL DEBT IN BRITAIN

Southland Times, Issue 25505, 27 October 1944, Page 5

NATIONAL DEBT IN BRITAIN

GLOOMY FORECAST BY LORD TEVIOT (8.0.W.) RUGBY, October 25. A gloomy forecast of Britain’s future financial position was given in the House of Lords by Lord Teviot, speaking to a motion calling attention to national war and postwar commitments. Lord Teviot said today Britain had • a national debt of £23,000,000,000 with a population of 45,000,000 and a burden

a head now of £5OO. He added that by th 6 end of the war the national debt might be £30,000,000,000. In 1943 Britain’s national income was £8,000,000,000. Personal expenditure at market prices was about £5,000,000,000. Public expenditure at home and abroad was £5,000,000,000. Therefore, we had an annual deficit of £2,000,000,000. He concluded: “This sort of finance must end. My fear is that the new Britain will bankrupt Britain.” Lord Southwood pointed out that the war would leave the country not poorer, but richer, because of the increase in production capacity. Lord Mottistone showed how personal savings in Britain now amounted to £5BO a household.

Lord Strabolgi indicated that there were large, unsatisfied trading demands in the Middle East and a tremendous market in Europe awaiting British goods. Lord Simon replied for the Government and said he thought that Lord Teviot had taken a more gloomy view than the figures justified. If they took any reasonable estimate he did not think they would reach a national debt of £30,000,000,000. He did not think it fair comment to say that the Government had rushed in blindfolded or embraced plans, such as social security, without first examining the question. The most careful examination of the question had been made by the Government.

Lord Teviot withdrew his motion.