HC Deb 27 January 2003 vol 398 cc608-9W
Miss McIntosh

To ask the Chancellor of the Exchequer if he will make a statement on the impact of exchange rates on small businesses in(a) 1992, (b) 1997 and (c) 2002. [93010]

John Healey

The effects of exchange rate changes are difficult to isolate with any confidence, but the Government recognise the difficulties that the recent weakness of the euro has caused for exporters, including many small businesses.

The Government seek a stable and competitive pound over the medium-term, and the best contribution it can make is to deliver low, stable inflation and sound public finances. Previous experience shows that any short-term attempt to manipulate the exchange rate can lead to wider economic instability, with damaging consequences for small businesses.