HC Deb 17 December 1981 vol 15 cc437-8
5. Mr. Horam

asked the Chancellor of the Exchequer what representations he has received on his statement of 2 December.

Sir Geoffrey Howe

As is usual on these occasions, I have received comments and representations from a variety of sources.

Mr. Horam

Has the Chancellor noted the CBI's view in its reaction to his mini-Budget, in which it points out that the result of it will be an extremely sluggish growth in output next year with no fall in the underlying trend of unemployment until the next general election? In these circumstances why does the right hon. and learned Gentleman continue to resist providing some help for industry, especially when capacity utilisation is still extremely low and when the PSBR, in real terms, is low for a recession?

Sir Geoffrey Howe

As I have said on a number of occasions, there was no mini-Budget on which industry could pass such a judgment. The House received a presentation of the public expenditure plans for next year, and we shall have to come to a judgment when we consider the Budget as a whole.

Mr. Archie Hamilton

Will my right hon. and learned Friend confirm that unemployment is likely to fall as a result of people being employed in small businesses that are not members of the CBI?

Sir Geoffrey Howe

My hon. Friend is right to draw attention to the importance of small businesses as the generators of additional employment. That is why my right hon. Friends and I have introduced no fewer than 72 different measures for the encouragement of small businesses.

Mr. Shore

In the light of continuing representations on public expenditure, will the right hon. and learned Gentleman give some new and special consideration to the effect on the elderly of this unusually severe winter weather, which will inevitably impose upon them extremely high fuel costs? He will know that the special heating allowance scheme is available only to pensioners over 70 years of age. Will he give urgent consideration to making a special increase in heating allowances for all categories of need during this winter? Will he consider again the Christmas bonus as one possibility—or a post-Christmas bonus—of assisting many who are being seriously affected by this appalling winter?

Sir Geoffrey Howe

The whole House shares the right hon. Gentleman's concern for old people—

Mr. William Hamilton

The Government have a funny way of showing it.

Sir Geoffrey Howe

However, on the experience of only the first few weeks of the winter it is difficult to conclude, statistically or otherwise, that it is likely to be different from any other winter. The right hon. Gentleman should take account of the fact that the Government are maintaining the Christmas bonus and that the previous Government suspended it for two years.