HC Deb 16 December 1977 vol 941 c549W
Mr. Tebbit

asked the Chancellor of the Exchequer what evidence he has that more jobs are created by the disbursement of Government grants to that end, than are eliminated, or prevented from being created, by the reduction of purchasing and investment capacity brought about by the taxation or increase in Government borrowings to pay for such grants.

Mr. Joel Barnett

Any estimates of the employment effects of Government expenditure on employment-oriented measures, net of the loss of employment resulting from an increase in taxation or the public sector borrowing requirement, must be based on a number of assumptions about how the measures in particular, and the economy more generally, work in practice. Different assumptions produce different answers, and all estimates are uncertain. Nevertheless, a careful consideration of such measures leads me to the conclusion that they generate more employment than is lost by the taxation or borrowing required to finance them.