asked the Chancellor of the Exchequer if he will now consider making cuts in national expediture and in grants to local government to offset the increasing cost of rearmament.

I would ask the hon. Member to await my Budget statement for a review of the effect on our finances of the additional expenditure on defence.

May I ask whether we are to take it that in the intervening period between now and the Budget the Chancellor has closed his mind to any possibility of economy in the national Exchequer?

No, Sir; that would be quite wrong.