Economic Progress (Hansard, 8 March 1984)

§ 5. Mr. Dormand
asked the Chancellor of the Exchequer if he is satisfied with the progress of the economy.

§ Mr. Peter Rees
We are currently enjoying a combination of steady growth and low inflation not seen since the 1960s.

§ Mr. Dormand
Does the Minister agree that any definition of the progress of the economy must include a consideration of the level of unemployment, the level of taxation and the development of manufacturing industry? As the Government have so signally failed on these three issues during the past five years, and as the Tory party made specific election promises on them, why does the Chancellor not bury his pride and embark seriously on fundamentally new policies?

§ Mr. Rees
Because my right hon. Friend and I are satisfied that the long-term policies adopted by the Government offer the best prospects for the country. I remind the hon. Gentleman, and the House, that if he adopts at least one of his criteria as the touchstone of success or failure, he will recall that unemployment doubled under the last Labour Administration.

§ Mr. Cockeram
Will my right hon. and learned Friend accept that an important plank in the Government's policy is to contain the public sector and encourage the private sector? Can he, therefore, explain the recent anomaly of the imposition of the composite rate of income tax on private sector banks and Trustee Savings Bank deposit account interest, while exempting deposit account interest in the public sector National Savings Bank? Will he take steps to rectify the anomaly?

§ Mr. Rees
I assure my hon. Friend that we attach the greatest importance to encouraging and enlarging the private sector. I cannot comment on rumours that may or may not touch on my right hon. Friend's Budget on Tuesday.

§ Mr. Boyes
In his latest report to Sunderland borough council, the principal careers officer said that there were 1,700 youngsters registered without jobs and 2,500 on special schemes, yet there were just 40 job vacancies, and only 10 vacancies for youngsters in my constituency. How can the Minister say that the economy is recovering, when we are in that sorry state?

§ Mr. Rees
Perhaps I can encourage the hon. Gentleman by reminding him that the number of people in work has recently been increased by 85,000.

§ Mr. Nicholls
Does my right hon. and learned Friend accept that, in addition to the other indicators that we have seen of late, the fact that only today we note that the building society rate may come down by 0.5 or 0.75 per cent. is yet another indication that the economy is reviving?

§ Mr. Rees
I am grateful to my hon. Friend for reminding me of that fact. The OECD and the European Community have singled out the United Kingdom of all the countries in the Community as the country whose economy is most likely to grow in the current year.

Mr. Terry Davies
How can the Chief Secretary be satisfied with the progress of the economy when the underlying level of unemployment shows an increase of more than 50,000 in two months?

§ Mr. Rees
One is never complacent about the underlying position of the economy. As an earnest of our concern, we are spending between £2 billion and £3 billion on training and job creation measures.