s The Tory budget had two main funtions: (1) to
win votes back forthe Tories. after their iibanindes showing in ietenk bye-elections; and (2) to use the concessions 4s an argument against further wage increases and to bolster up the arguments for an 'incomes policy.' The "expansionist" aspect — that of increasing _ purchasing power thus increasing demand for consumer goods- mist be seen in relation to other.measures taken by the Government. Increases in postal and telephone charges, increased contributions to national insurance and the — prospect of higher fares, etc., will all cut into purchasing power, The big noise the Tories aremaking about their measures to take industry to areas of high unemployment mist be seen against a background of the introduction of the Beaching plan. The latter will not only increase unemployment in the worst hit areas by closing lines and stations tut, by denuding these areas of transport, be a powerful disincentive for marmfacturers‘r operate in these regions,
Macmillian's Cardiff speech was, for him, almost explicit on these lines. Speaking of it as a 'peopleb budget’ he claimed that for the average worker the tax concessions were the equivalent to a 2% pay rise. He said that the concessions had been given mainly to the middle incomes and the lower grades of income still liable to tax. Those “whose wise forebearance in claiming salary or wage increases at a rate. . »« no greater than the economy. can bear" are the hope for the miccess of a "policy of expansion without inflation'. The Financial Times, commenting upon the speech said that a major aim of the badget was to win back to the Tory fold the "Orpington man" who had benefitted quite considerably from the concessions made.
Socialists must, of course, attack and campaign against the Tory electioneering budget. They mist point cut that it is a gigantic confidence ,trick perpertrated by a gang of discreditted politicians in order to hang on to political powers However, the arguments about expansionism and nonexpansionism are meaningless unless put into a class context. The main argument against thebidget is not its 'timidity' in approaching expansionism tut that it is part of the plan by the British capitaliet class to rationalise industry at the expense of the working class.