§ Mr. Ron Daviesasked the Chancellor of the Exchequer if he intends taking any direct steps to influence net wage levels during 1986–87.
§ Mr. MacGregorNet wage levels will be increased in 1986–87 as a result of the Budget measures to reduce the basic rate of income tax and to increase tax thresholds. These measures, together with falling inflation, will allow for real increases in take-home pay and so will encourage and assist the lower pay settlements necessary to check the rise in employers' costs and improve prospects for jobs.