§ 15. Mr. Gerald Howarthasked the Chancellor of the Exchequer if he will make a statement about the relative merits of (a) tax reductions for low income earners and (b) increased public expenditure in helping to reduce unemployment.
§ Mr. LawsonThe answer depends on whether employment is likely to grow faster in a high tax or a low tax economy. The Government take the view that, other things being equal, a low tax economy is likely to show greater dynamism, and thus be better for jobs than a high tax economy.