§ Lord Taylor of Warwickasked Her Majesty's Government:
Whether they can explain the fall in earnings growth from 3.7 per cent to 3.2 per cent in November 2003; and whether this fall might undermine consumers' ability to afford an increase in the cost of borrowing. [HL836]
§ Lord McIntosh of HaringeyWhole economy average earnings growth has remained well within sustainable limits over the past two years, responding flexibly to global developments and supporting UK employment. The decline in the 12-month rate of earnings growth between October and November 2003 reflects private sector bonus effects and timing effects in the award of public sector settlements. Nevertheless, earnings growth in the three months to November remained above rates recorded for most of the year. Macro-economic stability based on low and stable inflation, low interest rates and high employment supports consumers' ability to meet the costs of borrowing.