§ 9. Mr. Cookasked the Chancellor of the Exchequer when he anticipates that national income will return to its level of May 1979.
§ Sir Geoffrey HoweGDP is likely to return to its level of the first half of 1979 before the end of this year. Real national disposable income, which takes into account changes in the terms of trade, was already well above the level of the first half of 1979 by the second half of last year.
§ Mr. CookWill the Chancellor accept that the compromise wage average of the three GDP indexes shows a 4 per cent. fall in the past four years? Will he accept that talk of recovery is misplaced until the economy at least recovers to the point where it was before he got to work on it? Will he confirm that every previous post-war Government achieved a substantial growth in GDP? As he is given to blaming his predecessors, will he say how content he is about doing so much worse than the Administration of the right hon. Member for Sidcup (Mr. Heath), whom he is given to rebuking at length in the House?
§ Sir Geoffrey HoweThe hon. Gentleman understands very well that GDP growth has either come to a halt or fallen in almost every other industrial country in the Western world. In our economy we offer the prospect of an increase of about 2 per cent. this year, which is ahead of what is on offer in many other countries. A number of indicators suggest that growth is moving forward. I have drawn attention to the substantial increase of 3½ per cent. in manufacturing output in the two months from November to January.