§ 33. Mr. LivseyTo ask the Chancellor of the Duchy of Lancaster what has been the estimated cost to industry of the rise in base rates since April 1988; and if he will make a statement.
§ Mr. AtkinsThe cost to industrial and commercial companies to date of the changes in bank base rates since April 1988, compared with the cost if bank base rates had remained the same since April 1988, is estimated to be about £1.5 billion. The hon. Member should bear in mind, however, that a one percentage point increase in interest rates, even if sustained for a full year, costs companies far less than a one percentage point increase in pay settlements.