HC Deb 12 December 2002 vol 396 cc467-8W
25. Mr. MacDougall

To ask the Chancellor of the Exchequer if he will make a statement on the impact of increases in public expenditure on the stability of the economy, with special reference to(a) employment and (b) inward investment. [85274]

Ruth Kelly

Sound management of the public finances has meant that, during a time of global economic weakness and uncertainty, fiscal policy has supported monetary policy and smoothed the economic cycle by allowing the automatic stabilisers to operate in full.

As Government spending plans have come on stream, the public sector has contributed strongly to employment and the resilience of the labour market. Increases in the number of work force jobs in public administration, education and health sectors have averaged about 30,000 a quarter over the past year.

The platform of economic stability delivered by the Government's macroeconomic framework has encouraged inward investment. The UK was ranked second in the world at attracting inward investment in 2001.