§ Mr. Gouldasked the Chancellor of the Exchequer what is his estimate of the effect of a reduction in the price of North sea oil of $10 per barrel on the public sector borrowing requirement.
§ Mr. Peter ReesThe net effect on the PSBR of such a large change in the dollar oil price is very difficult to predict. It would depend on all the circumstances accompanying the fall such as the effect on the World and United Kingdom economies, the effect on the prices of other forms of energy and any effect on the pattern of exchange rates. A precise estimate would depend on what was assumed about these and other effects and would be subject to a wide margin of error.