6 JUNE 1970, Page 25

A word from Sir Alec

Sir: Mr Ludovic Kennedy voices an often- heard journalistic plaint (23 May) that the Tories are 'quite unconvincing over how such a loss of income [abolition of SET, reduction of personal taxes] is to be made up'.

Surely in the last fiscal year there was a Budget surplus of over £2.000 million—more than enough to meet the abolition of SET and one shilling off the standard rate of income tax? The question is not where the money comes from, but how the Tories avoid demand inflation and balance of payments trouble from a handout on this scale.