§ Matthew TaylorTo ask the Chancellor of the Exchequer for what reason he does not assume recent changes in(a) equity prices, (b) oil prices and (c) financial corporation (i) profits and (ii) bonuses to be cyclical for the purposes of his public finance forecasts. [22190]
§ Mr. Andrew SmithThe Treasury's methodology for estimating the impact of the economic cycle on the public finances is set out in the publication "Fiscal policy: public finances and the cycle", HM Treasury, March 1999. The impact of equity prices, oil prices and financial corporations on the forecast is described in detail in paragraphs B34-B49 of the pre-Budget report (pages 174–178).