§ 17. Mr. Richard Pageasked the Chancellor of the Exchequer what comparisons have been made recently on the rates of economic growth between members of the EEC.
§ Mr. LawsonAs I mentioned earlier to my hon. Friend the Member for Bedfordshire, North (Mr. Skeet), Britain's growth rate last year was the highest in the European Community.
§ Mr. PageDo not the excellent figures prove to my right hon. Friend the success of our economic policies? May I ask him most strongly not to yield to the blandishments to spend more borrowed money, because it will only drive up inflation, cause more unemployment and have a detrimental effect, particularly upon small businesses?
§ Mr. LawsonI assure my hon. Friend that I shall not yield to those blandishments, not even when those blandishments are offered by the right hon. Member for Birmingham, Sparkbrook (Mr. Hattersley), who has advocated an increase in the public sector borrowing requirement of £6 billion. That is a sure recipe for a rapid resurgence in inflation. Britain now has the best mix of steady growth and low inflation that we have had for a long time and we intend to keep it that way.
§ Dr. McDonaldIs the Chancellor not aware that America has already achieved a growth rate of 8 per cent. this year, far in excess of his expectations, by increasing public spending, particularly on welfare?
§ Mr. LawsonThere are certain advantages from having an economy and a society which has public expenditure as only 35 per cent. of its GDP and no Socialist party.