§ 9. Dr. Rudi Vis (Finchley and Golders Green)What are his forecasts for United Kingdom economic growth in 2000–01, 2000–02 and 2002–03. [106890]
§ The Chief Secretary to the Treasury (Mr. Andrew Smith)Forecasts for growth were set out in the pre-Budget report, and were between 2.25 and 2.75 per cent. for each of the years listed. Through our tough and decisive action, the Government have established the 1201 platform of stability necessary to secure stable growth in output and employment. Updated forecasts will be published in the Budget.
§ Dr. VisI thank my right hon. Friend for that answer. Are those growth rates sufficiently high to pursue the Government's various other goals, such as full employment and an end to child poverty?
§ Mr. SmithThe crucial point is that we have more than 750,000 more people in jobs since the general election, thanks to the steps that we have taken to achieve stability, sustained investment and low, stable inflation. That platform of stability, with the new deal and our other measures for investment and regeneration, will enable us steadily to increase employment. We want to move towards full employment so that all our people, who were so cruelly wasted under the Conservatives, can realise their full potential and use their talents and energies.
§ Mr. Peter Brooke (Cities of London and Westminster)Is the Chief Secretary satisfied by the productivity gains since 1997? Will he extrapolate from that performance his productivity predictions for the years in the original question?
§ Mr. SmithNo one can be complacent about this country's productivity record, which is due not least to the lack of education, training and investment that we inherited from the previous Government. We continue to press ahead to improve productivity, which is why educational and vocational skills are so important and rising levels of investment are so encouraging.
We welcome the upturn in output by manufacturing industry in the quarter to November; the annualised rate was 4 per cent., which is the highest for five years. Moreover, we are now seeing the highest ever levels of manufacturing output. It is especially encouraging that improvement is greatest among small firms. There is further to go, but we are making progress.