HC Deb 09 December 1982 vol 33 cc610-1W
16. Mr. Parry

asked the Chancellor of the Exchequer if he is satisfied with the effects of his policies in reducing unemployment; and if he will make a statement.

Mr. Brittan

Inflation is now at its lowest level for 10 years and further falls are in prospect. The underlying increase in average earnings is moderating and improvements in manufacturing productivity continue. Further wage moderation during this pay round is essential to secure lasting improvements in our external cost competitiveness and with it the prospect for sustainable increases in both output and employment.

20. Mr. McNally

asked the Chancellor of the Exchequer if he will estimate the net gain to the Exchequer if the level of unemployment were to be 1 million less than the current level.

Mr. Hayhoe

As a change in unemployment would affect a range of public receipts and expenditures by amounts varying with the causes of the reduction in unemployment, it is not possible to estimate the net Exchequer effect.

Mr. Canavan

asked the Chancellor of the Exchequer, pursuant to the reply to the hon. Member for Liverpool, Scotland Exchange (Mr. Parry) on 11 November, Official Report, c. 241, what progress has been made with his economic policies designed to reduce unemployment.

Mr. Brittan

Inflation is now at its lowest level for 10 years and further falls are in prospect. The underlying increase in average earnings is moderating and improvements in manufacturing productivity continue. Further wage moderation during this pay round is essential to secure lasting improvements in our external cost competitiveness and with it the prospect for sustainable increases in both output and employment.