HC Deb 29 October 1987 vol 121 c435
2. Mr. Forth

asked the Chancellor of the Exchequer what has been the growth in real personal disposable incomes over the past year.

The Economic Secretary to the Treasury (Mr. Peter Lilley)

In the year to the second quarter of 1987, real personal disposable incomes rose by 3½ per cent.

Mr. Forth

I thank my hon. Friend for that encouraging answer. Will he compare the recent growth in disposable incomes with that under the previous Labour Government?

Mr. Lilley

My hon. Friend raises an interesting point. The real take-home pay of a man on average earnings with a family of two children has risen by 22 per cent. under this Government. Under the previous Labour Government it rose by just½ per cent.

Mr. Skinner

Is the Minister aware that in 1979 an average of 45 per cent. of real disposable income was payable in debt? By 1986 that had risen to 73 per cent. and this year is hitting 80 per cent.? Is that not one of the main contributory factors to the crash on Wall street, the stock exchange and everywhere else?

Mr. Lilley

I advise the hon. Gentleman to read Tribune more closely and he will see that the hon. Member for Islington, South and Finsbury (Mr. Smith) said: There is a lot of evidence to show that most of the borrowing is being done not by individuals but by companies.