§ 24. Mr. Norman Atkinsonasked the Chancellor of the Exchequer why he considers current wage settlements should be reduced.
§ Mr. Ian StewartWage settlements should be reduced because of their effect on both output and employment. A lower level of wage settlements gives more scope for keeping prices competitive and the incentive to increase output, investment and jobs. If too much is taken by higher wage settlements that growth is put at risk. Those who manage to secure an excessive pay increase therefore jeopardise not only their own jobs, but also the jobs of others and the job prospects of the unemployed.