HC Deb 21 June 1979 vol 968 cc1488-9
10. Mr. Canavan

asked the Chancellor of the Exchequer whether he will now give details of the Government's policy on public expenditure.

Mr. Biffen

I refer the hon. Member to my right hon. and learned Friend's Budget Statement.

Mr. Canavan

What estimate has been made of the effect of the public expenditure cuts on unemployment in view of the reports that the Treasury has secret forecasts of unemployment running at the level of 2 million at the turn of the year, due partly to the savage cutback in public expenditure? Is the Minister afraid to come clean and tell the truth because of the possible social and political repercussions of his Government's disastrous economic policies?

Mr. Biffen

I simply do not believe that it would be possible to forecast with any degree of precision the increase in unemployment that might arise from the package of spending cuts announced at the time of the Budget.

Mr. Budgen

Does my right hon. Friend agree with the economic commentary in yesterday's Bank of England Quarterly Review on page 112, where it is said that sales of public assets are to some extent in competition with sales of gilts? Does my right hon. Friend go on to conclude that sales of public assets could not properly be described as a reduction of the public sector borrowing requirement?

Mr. Biffen

I have not had the benefit of reading the Bank of England Quarterly Review to which my hon. Friend refers, but I would not endorse what is stated there.