§ Mr. Dubsasked the Chancellor of the Exchequer whether there is a relationship between his recently announced guidelines of 8 to 12 per cent. monetary growth for 1982–83 and his 4 per cent. guideline for public sector pay.
§ Mr. BrittanThe considerations underlying the 8 to 12 per cent. monetary growth target for 1982–83 are set out in the Financial Statement and Budget Report, published on 9 March 1982. The target is consistent with a growth 373W in money GDP of 10 per cent. a year, which is in turn consistent with continued progress in reducing inflation and a strengthening of the recovery in the real economy. The public expenditure planning total of about £115 billion for 1982–83, also announced at Budget time, provides broadly for increases in the total sum available for public servants' pay from due settlement dates of 4 per cent. In turn, this total for public spending is intended to allow for a reduction in the PSBR in 1982–83 to about £9½ billion, which will allow the monetary target to be achieved while maintaining downward pressure on interest rates.