HC Deb 02 February 1978 vol 943 cc325-6W
Mr. Madden

asked the Chancellor of the Exchequer upon what published information or economic forecasts he is basing his forecasts of falling unemployment over the next 12 months.

Mr. Joel Barnett

In the Income Tax (Personal Allowances) debate on 10th November 1977 my right hon. Friend said that he believed productive potential to be growing at about 3 per cent. per annum so that growth of GDP in excess of 3 per cent. could be expected to lead—after allowing for the usual lags—to a fall in unemployment. The measures announced on 26th October 1977 were designated to enable growth to reach 3½ per cent. per annum during 1978.