§ Mr. Geraint Howells
asked the Chancellor of the Exchequer what effects on the overall level of inflation are expected from the real cuts in wages imposed on certain groups of public sector workers.
§ Mr. Biffen
[pursuant to his reply, 17 July 1980, c. 681]: The key to a reduction in inflation is the control on the 152W rate of growth of the money supply. But if inflation is to be lowered more quickly, and with a minimum of unnecessary unemployment there will need to be a significant reduction in the level of pay settlements throughout both the public and the private sector.