§ 93. Mr. James Hillasked the Chancellor of the Exchequer if he will list all the measures which the Government have taken in order to reduce the level of unemployment.
§ Mr. HigginsFollowing is the information
Measures to reduce unemployment have taken the form primarily of cuts in taxation, with the object of stimulating demand, and increases in short-term Government expenditure.2. The tax cuts amount to £1,400 million a year and include, amongst other things, cuts in income tax, corporation tax, purchase tax and S.E.T. We have also increased allowances on capital expenditure and extended the scope of free depreciation.3. Increases in short-term public expenditure stimulating employment have totalled nearly £900 million. The main items are:acceleration of nationalised industries' investment (just over £200 million), infrastructure in assisted areas (£164 million), repayment of post-war credits, naval ship-building, finance for RB211, housing improvement grants in assisted areas and road maintenance.4. Other measures which will have the effect of increasing demand have included:
- (a) Increases in social security payments for example, introduction of old persons' pensions, higher supplementary benefits, introduction of Family Income Supplement, etc.;
- (b) Bank Rate reduced to 6 per cent, on 1st April, 1971, and to 5 per cent. on 2nd September, 1971;
- (c) Hire purchase terms controls removed in July, 1971.
5. Other measures to improve the employment situation have included:
- (a) Measures to improve training and retraining facilities, including the major reorganisation of industrial training announced at the beginning of February;
179 - (b) Creation of new special development areas;
- (c) Miscellaneous measures such as a pilot scheme for employing young people on community jobs.
6. Apart from these specific measures, the Government's policy of encouraging a reduction in the high level of wage settlements in both the public and private sectors, which have been one of the causes of unemployment is important.