§ Mr. Robert Sheldon,
pursuant to his reply [Official Report, 27th July 1976; Vol. 916, c.195],gave the following information:
The estimates, derived from the Treasury macro-economic model, are based on the assumption that the increase in labour costs is in due course passed on into prices. The employment effects are primarily a consequence of the fall in consumer spending as the growth of real incomes is reduced. As my right hon. Friend said in the House, he expects that the unemployment effect of the new surcharge will be about 10,000 by early 1978.