§ Mr. Matthew TaylorTo ask the Chancellor of the Exchequer if he will estimate the effects of the tax cuts announced in the Budget, on the rate of inflation.
§ Mr. Lilley[holding answer 19 October 1988]: The budget gave no fiscal stimulus to inflation. It left the overall burden of taxation as a percentage of GDP unchanged. In the longer run, the tax reforms and reductions in tax rates, by improving supply, will help the Government to achieve their aim of reducing inflation.