§ Mr. David Price
asked the Chancellor of the Exchequer, in view of Her Majesty's Government's judgment, expressed in paragraph 7 of their White Paper on the economic situation dated 26th October, 1964, that the domestic 43W economy was not under undue pressure, what steps he intends to take to reduce the impact of the 7 per cent. Bank Rate upon the domestic economy; and to what extent the policy expressed in that White Paper remains that of Her Majesty's Government.
§ Mr. Callaghan
The Government adhere to the view that there is no general problem of undue pressure on resources. As I explained in my speech on the Second Reading of the Finance Bill, the rise in Bank Rate will help to prevent any rise in pressure resulting from the Government's measures to improve the balance of payments.