§ Mr. Higginsasked the Chancellor of the Exchequer what estimate he has made, 728W on the basis of his present policies, of the maximum difference in levels of unemployment which would eventually result from pay increases in the next round of zero, 1 per cent., 2 per cent., 3 per cent., 4 per cent., 5 per cent., 6 per cent., 7 per cent., 8 per cent., 9 per cent. and 10 per cent., respectively.
§ Mr. HealeyIt would be misleading to attempt a simple quantification of the kind that the right hon. Gentleman seeks, especially as confidence factors could be important at certain pay levels. However, I have repeatedly said that the rate of pay increase is one important factor in determining the level of unemployment, and I believe that this is widely understood and accepted. The limits on the growth of DCE and of the PSBR, which I announced on 15th December, make this relationship more explicit.