HC Deb 28 January 1977 vol 924 cc802-3W
Mr. Henderson

asked the Chancellor of the Exchequer how many jobs will be lost in England and Scotland, respectively, as a result of the withdrawal of regional employment premium.

Mr. Joel Barnett

The decision to withdraw regional employment premium was taken as part of a package of industrial and economic measures, the effect of which will be to reduce unemployment, compared to what it would otherwise have been.

Mr. Henderson

asked the Chancellor of the Exchequer how many jobs were created as a result of the operation of regional employment premium during each of the last six years in England and Scotland, respectively.

Mr. Joel Barnett

The measurement of the effect of individual instruments within the overall package of regional assistance is difficult, but research carried out by the Department of Applied Economics at Cambridge suggested that the impact of regional employment premium between 1971 and 1973 was probably no more than 20,000 to 30,000 jobs compared with a total regional policy effect of about 300,000 jobs between 1960 and 1971. Since then the value of the premium as a percentage of average earnings has fallen considerably.