UNEMPLOYMENT AND THE PSBR

HL Deb 19 May 1992 vol 537 c26WA

Earl Russell

asked Her Majesty's Government:

What would be the effect on the Public Sector Borrowing Requirement if the number of people unemployed were to be reduced by 600,000.

The Earl of Caithness

The direct effect of a reduction in the number of unemployed of 600,000 would be to reduce public expenditure on unemployment benefit, income support, housing benefit and community charge benefit by approximately £2 billion in a full year. There would be an equivalent direct effect on the Public Sector Borrowing Requirement.

The indirect effects of a reduction in unemployment on public expenditure and the Public Sector Borrowing Requirement would depend on the cause and nature of that reduction.