HC Deb 08 December 1977 vol 940 cc819-21W
Mr. Sillars

asked the Chancellor of the Exchequer on what date he declared it to be the Government's intention to reduce unemployment to 3 per cent. By

Mr. Robert Sheldon

Although most direct collection work on income tax is carried out by the staff of local collection offices, Inland Revenue staff in other offices are also concerned in various aspects of quantifying and collecting the tax.

The information requested is as follows:

the end of 1979; if he will list the major economic measures he has taken since then; if he will indicate which were helpful to that unemployment target and which increased the magnitude of the problem; and what is his current assessment of unemployment trends towards the end of 1979.

Mr. Healey

I said in my Budget Statement on 6th April 1976 that the Government's aim was to get unemployment down to 3 per cent. in 1979, but I emphasised that this would require an unprecedented rate of growth, based on exports, which in turn would depend on a rapid improvement in manufacturing performance.

Since then I have announced economic measures designed to reduce inflation to the level of our main competitors, and to achieve a high and sustainable level of output and employment, as follows:

  • 22nd July 1976—Public Expenditure
  • 15th December 1976—Economic Situation
  • 29th March 1977—Budget Statement
  • 15th July 1977–Counter—Inflation Policy
  • 26th October 1977–Economic Situation

However, developments in the world economy since April 1976 have not been favourable to achieving the rate of growth in the United Kingdom on which a return to full employment was predicted. I stressed again, in the debate on 10th November, that in present circumstances great uncertainties surround the future course of unemployment, but if we achieve a 3½ per cent. growth in GDP next year, there should be a slow but steady fall in unemployment from next year.