§ 12. Ms ShortTo ask the Chancellor of the Exchequer what assessment he has made of the effect on the public sector borrowing requirement of a halving of the rate of unemployment.
§ Mr. PortilloI refer the hon. Lady to the reply given earlier to the hon. Member for Knowsley, South (Mr. O'Hara).
Any attempt to quantify the effect of changes in unemployment on the PSBR would depend on a large number of assumptions, and would be subject to great uncertainty. In particular, there are no reliable estimates of the effects of unemployment on tax revenues.
23. Mr. William O'BrienTo ask the Chancellor of the Exchequer what assessment he has made of the effects of Government economic policies on unemployment over the past year; and if he will make a statement.
§ Mr. DorrellThe Government's success in bringing down underlying inflation to its lowest levels for 25 years has created a secure foundation for sustained recovery. Interest rates are at their lowest levels for 15 years, and manufacturing unit wage cost performance is the best on record. These developments; combined with the measures for business and the unemployed in the March Budget,730W provide the basis for sustainable, non-inflationary growth and improving employment prospects, as recent labour market indicators show.