HC Deb 11 November 1982 vol 31 c243W
26. Mr. Stoddart

asked the Chancellor of the Exchequer what evidence he has that there is a sustained recovery in the economy: and when he expects this recovery will be reflected in the levels of investment and employment.

Sir Geoffrey Howe

Recovery this year has been held back by the weakness of the world economy. But our success in reducing inflation, controlling public expenditure and reducing interest rates provides a secure foundation for recovery. The Industry Act forecast published earlier this week looked to a growth in GDP of 1½ per cent. in 1983. Prospects for unemployment depend crucially on progress in moderating pay settlements and improving our competitiveness.

Mr. Maxton

asked the Chancellor of the Exchequer what new measures he now proposes to stimulate or reflate the economy.

Sir Geoffrey Howe

As I made clear in my statement on 8 November, we are already pursuing, and intend to maintain, the responsible and balanced fiscal and monetary policies which offer the best prospect for sustained economic recovery.

Mr. Joseph Dean

asked the Chancellor of the Exchequer when he expects a sustained recovery in the economy; and when this will lead to an improvement in employment.

Mr. Brittan

The Industry Act forecast projects a modest recovery in activity over the next year, with GDP increasing by 1½ per cent. in 1983. The sooner the competitiveness of British industry is improved, the better will be the prospects for employment.

Mr. Newens

asked the Chancellor of the Exchequer if he is satisfied with progress made to date towards an economic recovery in the United Kingdom; and if he will make a statement.

Sir Geoffrey Howe

Our policies are promoting falling inflation and lower interest rates and these, along with a modest recovery in world activity, provide the basis for the 1½ per cent. increase in output which is forecast for next year. I am confident that our policies are the best ones for achieving a sustainable improvement in the economy's performance.

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