HC Deb 26 February 1991 vol 186 cc436-7W
Mr. Pawsey

To ask the Chancellor of the Exchequer if he will make a statement on the principal achievements of his Department since June 1987.

Mr. Maude

Since 1987, we have continued to build upon the changes, begun in 1979, to strengthen the economy, foster a spirit of enterprise and improve living standards.

Sterling has been brought into the exchange rate mechanism of the European monetary system, reinforcing the Government's strict anti-inflationary policy. Output is 7 per cent. higher. Beginning in 1987, business investment grew faster for three years than during any comparable period since the second world war. Taxes have been reformed and the basic rate of income tax cut to 25 per cent. Privatisation of 29 more major businesses has taken place and 24 per cent. of the adult population now own shares. The Government have exercised strict control of public expenditure. General Government expenditure has been brought below 40 per cent. of GDP for the first time since 1966–67. Over the three years to March 1990, £26 billion of public sector debt was repaid. Over 2 million more people are in work than in 1987. We have put forward proposals for the next steps towards European Community and monetary union, involving the introduction of a common Community currency, the hard ecu, to be managed by a new monetary institution—the European Monetary Fund.