Economic Assessment

HC Deb 27 July 1971 vol 822 cc186-7

2. Mr. Douglas

asked the Chancellor of the Exchequer if he has completed his mid-year economic assessment; and if he will make a statement on the economic correctives he has in mind.

13. Mr. Strang

asked the Chancellor of the Exchequer if he has completed his review of the state of the economy; and if he will make a statement.

Mr. Barber

I would refer hon. Members to the statement I made on 19th July.

Mr. Douglas

Does not the Chancellor agree that his statement holds out little prospect of any reduction of unemployment in the United Kingdom and no possibility of reduction in the excessively high unemployment levels we are experiencing in Scotland?

Mr. Barber

No, Sir, I disagree entirely, for the reasons which I gave last Tuesday.

Mr. Bruce-Gardyne

My right hon. Friend told us in his Budget Statement that he was not in favour of attempting to fine tune the economy. Will he, therefore, confirm that if it should transpire that the repercussions of the measures taken last week are reflected more slowly than expected in the economy, he would not be inclined to add to the measures that he applied last week in advance of seeing them achieve their purpose?

Mr. Barber

As I have said on many occasions, the principle I have applied throughout is that I believe the only sensible way for any Chancellor is to take whatever action is required when it is required.

Mr. Joel Barnett

Does not the Chancellor admit that his mini-Budget represents a complete reversal of his previous policy? If not, will he confirm that he does not intend to go for 4 to 4½ per cent. growth for more than a year and that at the end of that time he intends to apply the brakes again and go back to 3 per cent.?

Mr. Barber

No, Sir. I believe that the action which I took and which I announced last week is very sensible in the circumstances.

Mr. Lane

Is it not a fact that, including the latest measures, the Government have now reduced taxation by well over £1,000 million in just over a year, and that this is greatly welcomed by the country as a refreshing change from the policy of their predecessors?

Mr. Barber

Yes, my hon. Friend is absolutely right.