§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what is the effect at the margin of an increase in personal expenditure on consumption on the balance of payments; and if he will publish in theOfficial Report his estimate of the effect of an increase of £100 in such expenditure in terms of the amount of such £100 spent of United Kingdom output of goods and services, respectively, and the corresponding increases in imports and loss of exports.
§ Mr. Norman LamontThe balance of payments effect of an increase in consumers' expenditure will depend on why it has increased. For example, if higher income from domestic production is the cause, the effect on the current account may be negligible. On the other hand, with output unchanged higher consumers' expenditure would probably involve some deterioration in the balance of trade.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what proportion of the increase in consumption in 1988 and the current year to date can be attributed to those in the top and bottom quartiles of incomes; and what is his estimate of the import content in each case.
§ Mr. Norman LamontAn analysis of consumers' expenditure is not available in the form requested.324W Estimates of household expenditure, by income, for 1988 will be published early next year in a report of the family expenditure survey.