27. Mr. Edward M. Taylorasked the Chancellor of the Exchequer if he will indicate the likely effect of the Government's recent economic measures, in 1045 particular the tax increases and Bank Rate measures, on the Scottish economy.
§ Mr. CallaghanWe cannot have a healthy economy in any part of the United Kingdom unless we first strike a balance between our overseas payments and receipts. That is the purpose of the Government's recent measures. In working them out, particular attention is being paid to fostering the development of areas like Scotland.
Mr. TaylorWhile appreciating what the right hon. Gentleman has said, may I ask whether he will agree that Scotland has never before had to suffer at any one time such a wide range of penal monetary and fiscal measures, and that Bank Rate alone between now and May will mean an extra £180,000? Is he further aware that prominent members of the present Government have called from time to time in past years for the exemption of Scotland from this kind of proposal? What steps are they going to take to implement those promises?
§ Mr. CallaghanI am afraid that the hon. Gentleman's premise is quite wrong on this occasion Scotland and other development areas are being singled out to ensure that they do not suffer from the effects of the Government's measures.