§ 18. Mr. Lawson
asked the Chancellor of the Exchequer, in the light of the analysis contained in the latest issue of the Bank of England Quarterly Bulletin, what further proposals he has for curbing inflation and cutting public expenditure.
§ Mr. Healey:
The bank's bulletin gave further support to my own warnings that wage increases are now the main cause of inflation in this country. Strict adherence to the TUC guidelines on pay is, therefore, essential if we are to see any reduction in the rate of inflation this year. I have no statement about public expenditure to make at this time. The Government's plans are set out in the White Paper on Public Expenditure to 1978–79 (Cmnd 5879).