§ Mr. Deakins
asked the Chancellor of the Exchequer what steps the United Kingdom proposes to take to help the world out of the present recession.
§ Mr. Bruce-Gardyne
Reduced levels of inflation and restraint on Government borrowing are widely agreed by the major industrial countries to be the essential prerequisites for sound growth. By pursuing a responsible, flexible and balanced approach to fiscal and monetary policy, the British Government, like many other Governments, are now successfully reducing both inflation and interest rates—without a drift into financial laxity. Reduced inflation and interest rates should not only improve the financial position of companies but also encourage increased investment and risk taking, as well as higher consumption. The prospect for next year is for a resumption of modest growth both in the world and United Kingdom economies.
Life Assurance Relief Mortgage Interest Relief* Approved pension schemes† Employers' Contributions to approved pension schemes† Retirement Annuity Relief Age Allowance Estimated Cost, £ million 1982–83 590 2,040 1,100 1,300 380 430 Estimated cost at 1975–76 constant prices‡ £ million 1982–83 260 890 480 565 165 190
* Cost estimated on the basis that the recommended mortgage rate does not change for the remainder of the financial year.
† The bases for these estimates are being reviewed and the figures may be altered subsequently.
‡ As in the previous replies, the retail prices index based on 1975–76 = 100 has been used to convert from current to constant prices.