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Inflation
15. Mr. Martlew : To ask the Chancellor of the Exchequer if he will make a statement on the current rate of inflation.
Mr. Norman Lamont : The retail price index rose by 6.4 per cent. in the year to October 1988.
31. Mr. Hinchliffe : To ask the Chancellor of the Exchequer if he will make a statement on the current rate of inflation.
Mr. Lilley : The retail price index rose by 6.4 per cent. in the year to October 1988.
68. Mr. Win Griffiths : To ask the Chancellor of the Exchequer what assessment he has made of the principal factors increasing the inflation rate during the last year.
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Mr. Lilley : Inflation has risen as a consequence of the very strong growth in demand this year. Recent tightening of monetary policy will ensure that inflation falls in 1989.
75. Mr. Alton : To ask the Chancellor of the Exchequer what action he intends to take to make up the shortfall on spending experienced by Departments committed to projects whose costs have risen through increased inflation.
Mr. Major : New plans were announced by my right hon. Friend the Chancellor of the Exchequer in his Autumn Statement on 1 November. Although the expected level of inflation was a factor that was considered when setting these plans, public expenditure is planned in cash terms and in general there is no automatic adjustment for higher prices. The planning total for 1989-90 remains £167.1 billion, the same level published in the last public expenditure White Paper. Within that unchanged total there is provision for substantial increases in spending on priority programmes.
84. Mr. Bellingham : To ask the Chancellor of the Exchequer what further steps he plans to take to reduce inflation.
Mr. Lilley : The progressive tightening of monetary conditions since the summer will exert downward pressure on inflation.
Balance of Payments
18. Mr. Caborn : To ask the Chancellor of the Exchequer what information he has as to the balance of payments deficits of (a) the United State of America and (b) the United Kingdom, expressed as a proportion of the gross national product.
33. Mr. Illsley : To ask the Chancellor of the Exchequer what information he has as to the balance of payments deficits of (a) the United States of America and (b) the United Kingdom, expressed as a proportion of the gross national product.
48. Mr. Michael : To ask the Chancellor of the Exchequer what information he has as to the balance of payments deficits of (a) the United States of America and (b) the United Kingdom, expressed as a proportion of the gross national product.
53. Mr. Gareth Wardell : To ask the Chancellor of the Exchequer what information he has as to the balance of payments deficits of (a) the United States of America and (b) the United Kingdom, expressed as a proportion of the gross national product.
Mr. Lilley : In the latest 12 months for which figures are available, the current account deficit as a proportion of the gross national product was 2.0 per cent. in the United Kingdom compared with 3.1 per cent. in the United States of America.
29. Mr. Doran : To ask the Chancellor of the Exchequer if he will make a statement on the current balance of payments position.
36. Mr. McAvoy : To ask the Chancellor of the Exchequer if he will make a statement on the current balance of payments position.
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39. Mr. Clelland : To ask the Chancellor of the Exchequer if he will make a statement on the current balance of payments position.
72. Mr. Ted Garrett : To ask the Chancellor of the Exchequer if he will make a statement on the current balance of payments position.
Mr. Major : Recent import figures and other indicators have shown that domestic demand has been growing rather too fast. Appropriate action has been taken.
Treasury Income
19. Mr. Canavan : To ask the Chancellor of the Exchequer what has been the total income to the Treasury since May 1979 from (a) North sea oil revenue and (b) the sale of publicly owned assets.
Mr. Norman Lamont : For the period from 1979-80 to 1987-88, North sea oil revenues amounted to some £62 billion. For the period from 1979-80 to the end of 1988-89, net privatisation proceeds are estimated to amount to some £23.5 billion.
Interest Rates
21. Mr. Skinner : To ask the Chancellor of the Exchequer when he expects the level of interest rates to fall ; and if he will make a statement.
49. Dr. Moonie : To ask the Chancellor of the Exchequer what estimate he has made of future movement in interest rates over the next year.
85. Mr. Martyn Jones : To ask the Chancellor of the Exchequer what estimate he has made of future movement in interest rates over the next year.
Mr. Lilley : Base rates are currently 13 per cent. I never comment on future movements in interest rates.
38. Mr. Worthington : To ask the Chancellor of the Exchequer if he will make a statement on the current level of interest rates.
47. Mr. Jack Thompson : To ask the Chancellor of the Exchequer if he will make a statement on the current level of interest rates.
69. Mr. Darling : To ask the Chancellor of the Exchequer if he will make a statement on the current level of interest rates.
Mr. Lilley : Bank base rates are 13 per cent.
43. Ms. Armstrong : To ask the Chancellor of the Exchequer what assessment he has made of the impact of continuing high interest rates on the international competitiveness of the pound sterling.
74. Mr. Steinberg : To ask the Chancellor of the Exchequer what assessment he has made of the impact of continuing high interest rates on the international competitiveness of the pound sterling.
Mr. Lilley : The sterling exchange rate is one of the factors taken into account in the continual and comprehensive assessment of monetary conditions.
61. Mr. Knox : To ask the Chancellor of the Exchequer if he will assess the impact of current levels of interest rates on the economy.
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Mr. Lilley : Higher interest rates will increase downward pressure on inflation and thereby provide the basis for our continued economic success.
Ms. Quin : To ask the Chancellor of the Exchequer what assessment he has made of the impact of continuing high interest rates in the international competitiveness of the pound sterling.
Mr. Lilley : The sterling exchange rate is one of the factors taken into account in the continual and comprehensive assessment of monetary conditions.
Unleaded Petrol
20. Mr. Kirkwood : To ask the Chancellor of the Exchequer what representations he has received regarding increases in the tax concession on unleaded petrol ; and if he will make a statement.
Mr. Lilley : In his last Budget, my right hon. Friend increased the tax differential in favour of unleaded petrol to nearly 11p per gallon so that at the pump it now sells at 5 or 6p cheaper than four-star.
22. Mr. Matthew Taylor : To ask the Chancellor of the Exchequer if he has any plans to increase the tax concession on unleaded petrol ; and if he will make a statement.
Mr. Lilley : This is a matter for my right hon. Friend's Budget.
Growth
23. Mr. Moss : To ask the Chancellor of the Exchequer what has been the growth between 1981 and 1987 of (a) consumer expenditure, (b) exports and (c) investment in the British economy.
64. Mrs. Roe : To ask the Chancellor of the Exchequer what has been the growth between 1981 and 1987 of (a) consumer expenditure, (b) exports and (c) investment in the British economy.
Mr. Major : Between 1981 and 1987 consumers' expenditure grew by 23 per cent. compared with growth of 28 per cent. for exports of goods and services and 33 per cent. for investment.
45. Sir Michael McNair-Wilson : To ask the Chancellor of the Exchequer what is the latest figure for the growth of output in the economy.
Mr. Major : The output measure of gross domestic product is estimated to have grown by 5 per cent. in the year to 1988, third quarter.
46. Mr. Stevens : To ask the Chancellor of the Exchequer what has been the average annual growth of productivity in the United Kingdom economy since 1980.
Mr. Major : Whole economy productivity has grown by an average of 2 per cent. a year since 1980, a rate similar to that of Japan and faster than all other major industrial countries.
Residence in the United Kingdom"
24. Mr. Barry Field : To ask the Chancellor of the Exchequer what responses he has received to the consultative document entitled "Residence in the United Kingdom".
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Mr. Norman Lamont : At 30 November, the date by which comments were requested, 168 responses had been received expressing a wide range of views.
Pensioners
25. Mr. Morley : To ask the Chancellor of the Exchequer when he last met representatives of national pensioners' organisations to discuss the fiscal regime for pensioners.
65. Mr. Patchett : To ask the Chancellor of the Exchequer when he last met representatives of national pensioners' organisations to discuss the fiscal regime for pensioners.
67. Mr. Sean Hughes : To ask the Chancellor of the Exchequer when he last met representatives of national pensioners' organisations to discuss the fiscal regime for pensioners.
Mr. Andrew Smith : To ask the Chancellor of the Exchequer when he last met representatives of national pensioners' organisations to discuss the fiscal regime for pensioners.
Mr. Norman Lamont : My right hon. Friend has not met
representatives of national pensioners' organisations, but my right hon. Friend the Secretary of State for Social Security meets representatives from time to time and passes on their concerns.
Privatisation
26. Mr. Andrew Mitchell : To ask the Chancellor of the Exchequer how many major businesses have been privatised since 1979 ; and how many of their employees have bought shares as a consequence.
80. Mr. Arnold : To ask the Chancellor of the Exchequer how many major businesses have been privatised since 1979 ; and how many of their employees have bought shares as a consequence.
Mr. Norman Lamont : Nineteen major businesses have been privatised since 1979 ; 90 per cent. of eligible employees have participated in Government share sales.
58. Mr. Baldry : To ask the Chancellor of the Exchequer what is the total estimated yield to the Exchequer in corporation tax of those companies which have been privatised since 1979.
Mr. Norman Lamont : The companies privatised since 1979 paid a total of £1 billion in corporation tax in the financial year 1987-88.
Environment
27. Mr. Malcolm Bruce : To ask the Chancellor of the Exchequer if he will institute a review of the impact of the taxation system on the environment.
Mr. Norman Lamont : We have no plans for a separate review, but environmental issues are, of course, taken into account where appropriate in considering changes to the tax system.
Profitability
28. Mr. Tim Smith : To ask the Chancellor of the Exchequer if he will make a statement on the level of profitability in the British economy.
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Mr. Major : Chart 2.9 of the forecast presented in the Autumn Statement indicates that in 1988 the net rate of return of non-North sea industrial and commercial companies should rise for the seventh successive year, to its highest level since the early 1960s.
Personal Taxation
30. Mr. Beith : To ask the Chancellor of the Exchequer if he will make a statement on the progress of his Department's plans for the reform of personal taxation.
Mr. Norman Lamont : The new system of independent taxation for husband and wife will be introduced in April 1990. The Inland Revenue already has preparations well in hand.
Investment
32. Mr. Bright : To ask the Chancellor of the Exchequer if he will make a statement on the level of investment in the economy.
Mr. Major : Total real fixed investment in the first half of 1988 was at its highest level ever, having grown by 9.6 per cent. on the same period a year earlier.
Group of Seven
34. Mr. Henderson : To ask the Chancellor of the Exchequer what information he has as to the current inflation rates of the member states of the Group of Seven industrialised countries.
35. Mr. Morgan : To ask the Chancellor of the Exchequer what information he has as to the current inflation rates of the member states of the Group of Seven leading industrialised countries.
Mr. Lilley : I refer the hon. Members to the answer that my right hon. Friend the Financial Secretary gave to the hon. Member for Redcar (Ms. Mowlam) earlier today.
CBI
37. Mr. Ron Davies : To ask the Chancellor of the Exchequer when he next expects to meet representatives of the Confederation of British Industry ; and what matters will be discussed.
57. Mr. Flynn : To ask the Chancellor of the Exchequer when does he next expect to meet representatives of the Confederation of British Industry ; and what matters will be discussed.
Mr. Major : I refer the hon. Members to the reply that my right hon. Friend the Chancellor of the Exchequer gave earlier today to the hon. Member for Wolverhampton, South-East (Mr. Turner).
Contingency Fund
40. Mr. Tom Clarke : To ask the Chancellor of the Exchequer if he expects to allocate any resources from the contingency fund in 1989-90 to (a) pensions and (b) education.
Mr. Macdonald : To ask the Chancellor of the Exchequer if he expects to allocate resources from the contingency fund in 1989-90 to (a) pensions and (b) education.
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Mr. Major : I refer the hon. Member to the reply that I gave earlier today to the hon. Member for Blyth Valley (Mr. Campbell).
Child Tax Allowances
41. Mr. George Howarth : To ask the Chancellor of the Exchequer if he has any plans to reintroduce child tax allowances.
42. Mr. Battle : To ask the Chancellor of the Exchequer if he has any plans to reintroduce child tax allowances.
50. Mr. McCartney : To ask the Chancellor of the Exchequer if he has any plans to reintroduce child tax allowances.
52. Mr. Wareing : To ask the Chancellor of the Exchequer if he has any plans to reintroduce child tax allowances.
Taxation (Incentives)
44. Mr. Grocott : To ask the Chancellor of the Exchequer if he will publish any information his Department possesses on the incentive effects of the reduction in tax rates from 60 per cent. to 40 per cent. in his last Budget.
Mr. Norman Lamont : Estimates of the direct revenue costs of the reductions in income tax rates were published in the Financial Statement and Budget Report on Budget day. Notwithstanding those reductions, provisional figures suggest that income tax receipts in the first seven months of 1988-89 are 5 per cent. higher than in the corresponding period in 1987-88 as a result of the growth in employment and earnings. It is not possible to isolate the effects of the Budget measures on these factors.
Tax Thresholds
51. Mr. Sumberg : To ask the Chancellor of the Exchequer how many people have been taken out of paying income tax as a result of the raising of tax thresholds over the past five years.
Mr. Norman Lamont : Over 820,000 fewer single people and married couples are liable to income tax in 1988-89 compared with those who would be liable under the tax regime in 1983-84 with allowances and thresholds indexed for inflation to 1988-89.
Charitable Giving
54. Mr. Fishburn : To ask the Chancellor of the Exchequer what are the figures for the level of charitable giving.
66. Mr. Hanley : To ask the Chancellor of the Exchequer what are the latest figures for the level of charitable giving.
Mr. Norman Lamont : I regret that comprehensive information on charitable giving is not available from official sources. Available information is as follows. Covenanted giving to charities amounted to some £450 million in 1985-86, £500 million in 1986-87 and is estimated at about £650 million in 1987-88. The available
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information on gifts to charities on death relates only to estates above the value at which capital transfer tax or inheritance tax would be payable in the absence of exemptions. For these estates the amounts are provisionally estimated at £300 million in both 1985-86 and 1986-87.Public Sector Debt
55. Mr. Butterfill : To ask the Chancellor of the Exchequer what was the total public sector debt repayment for the year 1987-88 ; what was the equivalent figure for 1979 ; and if he will make a statement.
Mr. Lilley : The public sector debt repayment was £3.6 billion in 1987-88, per cent. of GDP. In 1978-79 there was a public sector borrowing requirement (PSBR) of £9.2 billion, 5 per cent. of GDP, equivalent to a PSBR of £22.3 billion at 1987-88 levels of GDP.
European Monetary System
56. Mr. Steel : To ask the Chancellor of the Exchequer when he last met his fellow European Community Ministers to discuss the European monetary systems.
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