§ 9. Mr. Neil Hamiltonasked the Chancellor of the Exchequer if he will make a statement on the level of the public sector borrowing requirement for the coming year.
§ Mr. Peter ReesAs my right hon. Friend the Chancellor of the Exchequer indicated in his Budget statement, we have set the PSBR at £7 billion, equivalent to 2 per cent. of GDP.
§ Mr. HamiltonIs my right hon. and learned Friend aware that that news has been greeted with some acclaim in the City, and that it is good news for industry in this country in general, and in particular for manufacturing industry? After all, it holds out the prospect of lower interest rates and a stabilising of the currency.
§ Mr. ReesI am grateful for those comments. The figures certainly signalled to the world outside that the Government are still on course and pursuing a sound financial policy that will be of considerable benefit to the economy.
§ Mr. WrigglesworthIn that case, might it not have been more accurate to describe the Budget as a Budget for the City rather than for jobs? If the PSBR target and the other figures in the Budget strategy represent a Budget for jobs, how is it that the impact of the Budget on the economy will not be deflationary?
§ Mr. ReesIf the hon. Gentleman considers the growth record of the past four or five years and the prediction of growth for the coming year, he will realise that his strictures are wide of the mark.
§ Mr. Hugh BrownWill the Chief Secretary say how much of the forecast public expenditure for next year will be due to capital receipts from the sale of council houses, and does he now know what the Labour party policy is on that matter?
§ Mr. ReesWithout notice, I am afraid that I cannot give the projected receipts.
The hon. Gentleman asks me about Labour party policy. With notice, I derive my knowledge from the Labour manifesto, which states that Labour will:
End enforced council house sales, empower public landlords to repurchase homes sold under the Tories".