§ 54. Mr. David Watkinsasked the Chancellor of the Exchequer what estimate he has made of the effects of changes in international crude oil prices on the United Kingdom gross domestic product.
§ Mr. BrittanThe precise effects of changes in world oil prices on the United Kingdom economy will depend on the size of any change, on the manner in which it occurs, on the policy response of other Governments, on how far and when it is matched by changes in the prices of North sea oil and on a whole host of other factors. Nevertheless, a fall in world oil prices could be expected to have a favourable effect on inflation and output, both here and abroad.