Austria came to terms with its political and economic disadvantages after the war, jettisoned those parts of its Marxist ideological inheritance whic… - Denis Healey

Britain's economic problem is fundamentally far greater than France's since France is much less dependent on foreign trade and imported raw materials. Moreover Britain has economic relations with her Commonwealth whose importance outweighs the potential benefits of economic co-operation with Europe. For example, by 1952 over half Britain's foreign trade will be with the Commonwealth as against 22 per cent with Europe. Also Britain's imports from the Commonwealth are mainly indispensable raw materials, whereas her imports from Europe are less essential.

The Budget I have presented today is a hard one for all of us in Britain. It is dictated by the harsh reality of the world we live in. A severe Budget is a necessary element in any strategy for improving the overall performance of our economy, which has been lagging increasingly behind most industrial economies for more than a single generation. Added to the need for measures to produce the essential structural changes in the balance of our economy are the burdens we carry with other countries because the explosion of world prices has cut our real income by 4 per cent. But in this situation the key to our immediate success is the rate of inflation inside Britain, and it is our failure here which is responsible for the special severity of this Budget. So long as pay and prices increase at their present rates, no Chancellor of the Exchequer who puts his country first would act otherwise than I have done this afternoon.

I warn my hon. Friends...that once we cut defence expenditure to the extent where our security is imperilled, we have no houses, we have no hospitals, we have no schools. We have a heap of cinders.