§ Mr. Peter BottomleyTo ask the Chancellor of the Exchequer if he will estimate the employment effect of a direct increase in wages in the UK of 0.6 per cent.. [47237]
§ Mrs. LiddellThe impact on employment would depend on why wages increased, and how employers and employees responded to the increase in wages. For example, if an increase in wages reflected higher productivity it need have no employment consequences, and for those on low pay it could promote employee commitment, reduce staff turnover and thereby provide a boost to productivity.