§ 33. Mr. GogginsTo ask the Chancellor of the Exchequer what is the net effect on public finances arising from changes in the rate of employment since May 1997. [112251]
§ Mr. Andrew SmithEmployment has increased by over 800,000 since the last election, and there are now more people in work than ever before. While higher employment improves the public finances by raising revenue and reducing social security payments, it is difficult to identify the precise effect of changes in the rate of employment on the public finances, as this depends on a large number of factors. None the less, a higher rate of sustainable employment has been an important contributory factor to the substantial improvement seen in the public finances since May 1997.