§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer if he will make a statement on the policy of his Department on varying the cash plans of spending departments if inflation turns out to be significantly different from expected over the timescale covered by the Comprehensive Spending Review. [59421]
§ Mr. Byers[holding answer 12 November 1998]: The Economic and Fiscal Strategy Report published in June made it clear that cash plans of spending departments will be reviewed only if inflation varies substantially from forecast. In responding to the Treasury Committee report on the EFSR the Government said that they will not consider reviewing the cash figures other than in the event of inflation varying by more than 1.5 per cent. cumulatively from the projections in the Comprehensive Spending Review. There is, of course, no presumption that any review would lead to any changes in Departmental cash plans.