§ 26. Mr. Stoddartasked the Chancellor of the Exchequer what evidence he has that there is a sustained recovery in the economy: and when he expects this recovery will be reflected in the levels of investment and employment.
§ Sir Geoffrey HoweRecovery this year has been held back by the weakness of the world economy. But our success in reducing inflation, controlling public expenditure and reducing interest rates provides a secure foundation for recovery. The Industry Act forecast published earlier this week looked to a growth in GDP of 1½ per cent. in 1983. Prospects for unemployment depend crucially on progress in moderating pay settlements and improving our competitiveness.
§ Mr. Maxtonasked the Chancellor of the Exchequer what new measures he now proposes to stimulate or reflate the economy.
§ Sir Geoffrey HoweAs I made clear in my statement on 8 November, we are already pursuing, and intend to maintain, the responsible and balanced fiscal and monetary policies which offer the best prospect for sustained economic recovery.
§ Mr. Joseph Deanasked the Chancellor of the Exchequer when he expects a sustained recovery in the economy; and when this will lead to an improvement in employment.
§ Mr. BrittanThe Industry Act forecast projects a modest recovery in activity over the next year, with GDP increasing by 1½ per cent. in 1983. The sooner the competitiveness of British industry is improved, the better will be the prospects for employment.
§ Mr. Newensasked the Chancellor of the Exchequer if he is satisfied with progress made to date towards an economic recovery in the United Kingdom; and if he will make a statement.
§ Sir Geoffrey HoweOur policies are promoting falling inflation and lower interest rates and these, along with a modest recovery in world activity, provide the basis for the 1½ per cent. increase in output which is forecast for next year. I am confident that our policies are the best ones for achieving a sustainable improvement in the economy's performance.