§ Mr. Craigenasked the Chancellor of the Exchequer, pursuant to his reply to the hon. Member for Glasgow, Maryhill of 9 March, if he will make the calculation of the likely reduction in public expenditure in a full year of a 1 per cent., 2 per cent. or 3 per cent reduction in minimum lending rate on the basis of present public expenditure levels.
§ Mr. Brittan[pursuant to his reply, 16 March 1981]: No. As I stated in my reply of 9 March, the development of the economy will alter as a result of reductions in minimum lending rate. It is therefore unrealistic to assume that public expenditure programmes on items such as unemployment and social security benefits, and Government revenue from taxation, remain unchanged. The resulting change in the public sector borrowing requirement would have to be taken into account in any calculation of the savings from lower public sector debt interest payments, together with the other changes in public expenditure referred to above. In practice, since the subsequent development of the economy is uncertain, a precise estimate cannot be given.