§ Mr. Austin Mitchell
asked the Chancellor of the Exchequer what was the trend rate of productivity growth used in the assessment referred to in the reply dated 19 December 1980, Official Report, c. 364, to the hon. Member for Grimsby; and how this compares with the current assumption.
§ Mr. Bruce-Gardyne
The trend rate of productivity growth used by the IMF to calculate normalised unit labour costs was about 1¾ per cent. per annum. This assumption has not subsequently been revised. Since output per man hour has actually increased by over ten per cent. since the end of 1980, relative actual unit labour costs currently provides a more accurate measure of competitiveness.