House of Commons Hansard Debates for 26 Jan 1989

83. Mr. Michael Brown : To ask the Chancellor of the Exchequer what has been the fall in the number of long-term unemployed aged 18 to 24 years since October 1986.

95. Mr. Gerald Bowden : To ask the Chancellor of the Exchequer what has been the fall in the number of long-term unemployed aged 18 to 24 years since October 1986.

97. Mr. Andy Stewart : To ask the Chancellor of the Exchequer what has been the fall in the number of long-term unemployed aged 18 to 24 years since October 1986.

Mr. Major : The latest available figures, for October 1988, show that the number of long-term unemployed aged between 18 and 24 has fallen by one half since October 1986.

Exchange Rate

18. Mr. Flynn : To ask the Chancellor of the Exchequer if he will make a statement on the latest exchange rate policy.

110. Mr. Murphy : To ask the Chancellor of the Exchequer if he will make a statement on exchange rate policy.

Mr. Lilley : The Government's policy is unchanged. The need to reduce inflation is paramount and a firm exchange rate is essential to achieve this objective.

World Bank and IMF

19. Miss Lestor : To ask the Chancellor of the Exchequer when he next expects to meet the managing director of the International Monetary Fund and the President of the World Bank ; and what matters they propose to discuss.

Mr. Lawson : I expect to see the managing director of the IMF at the G7 meeting in Washington next week.

VAT

20. Mr. Baldry : To ask the Chancellor of the Exchequer what representations he has received from charities concerning the European Court of Justice ruling on value added tax on new buildings.

Mr. Lilley : My right hon. Friend and I have received a large number of representations from charitable bodies about the impact of the recent European court judgment on VAT zero rates, and I and customs officials have also held meetings with representative groups. The points made are being carefully considered and I will make an announcement soon.

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31. Mr. Graham : To ask the Chancellor of the Exchequer how much a person on average earnings spends as a proportion of his total income on value added tax now ; and what is the comparable figure for 1978-79.

119. Mr. McCartney : To ask the Chancellor of the Exchequer how much a person on average earnings spends as a proportion of his total income in value added tax now ; and what is the comparable figure for 1978- 79.

137. Mr. Bradley : To ask the Chancellor of the Exchequer how much a person on average earnings spends as a proportion of his total income on value added tax now ; and what is the comparable figure for 1978-79.

Mr. Norman Lamont : Estimates of VAT payments as a proportion of total income (ie including unearned income) are not available. Estimates of VAT payments as a proportion of gross earnings were given as part of an answer to my hon. Friend the Member for Hornchurch (Mr. Squire) on 10 January 1989 at columns 634-56.

42. Mr. Pike : To ask the Chancellor of the Exchequer what recent representations he has received regarding the future policy on taxation of those items at present exempt from value added tax.

Mr. Lilley : My right hon. Friend the Chancellor has received a number of representations about the future policy on taxation of items at present exempt from value added tax.

117. Mr. Andrew F. Bennett : To ask the Chancellor of the Exchequer what representations he has received regarding the imposition of value added tax on books, periodicals and newspapers.

Mr. Lilley : My right hon. Friend the Chancellor has received a number of representations in favour of maintaining VAT zero rating for books, periodicals and newspapers.

Investment

21. Mr. Tim Smith : To ask the Chancellor of the Exchequer what are the latest figures for the growth of manufacturing investment.

70. Mr. French : To ask the Chancellor of the Exchequer what are the latest figures for the growth of manufacturing investment.

111. Mr. John Greenway : To ask the Chancellor of the Exchequer what are the latest figures for the growth of manufacturing investment.

Mr. Major : In the first three quarters of 1988, manufacturing investment was 11 per cent. higher than in the same period a year earlier.

22. Mr. Redwood : To ask the Chancellor of the Exchequer what has been the growth of total fixed investment in the United Kingdom since 1981.

45. Mr. Hind : To ask the Chancellor of the Exchequer what has been the growth of total fixed investment in the United Kingdom since 1981.

73. Mr. Fishburn : To ask the Chancellor of the Exchequer what has been the growth of total fixed investment in the United Kingdom since 1981.

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76. Mr. Bill Walker : To ask the Chancellor of the Exchequer what has been the growth of total fixed investment in the United Kingdom since 1981.

93. Mr. David Davis : To ask the Chancellor of the Exchequer what has been the growth of total fixed investment in the United Kingdom since 1981.

Mr. Major : In the first three quarters of 1988 total fixed investment was 43 per cent. higher in real terms than in 1981.

25. Mr. Hayes : To ask the Chancellor of the Exchequer what has been the ratio between the growth of investment and the growth of consumption over the past five years.

36. Mrs. Peacock : To ask the Chancellor of the Exchequer what has been the ratio between the growth of investment and the growth of consumption over the past five years.

63. Mr. David Shaw : To ask the Chancellor of the Exchequer what has been the ratio between the growth of investment and the growth of consumption over the past five years.

108. Mr. David Nicholson : To ask the Chancellor of the Exchequer what has been the ratio between the growth of investment and the growth of consumption over the past five years.

Mr. Major : Investment has grown over one and a half times faster than consumption over the past five years up to the third quarter of 1988.

33. Mrs. Roe : To ask the Chancellor of the Exchequer what is his latest estimate of the growth in total investment in 1988.

35. Mr. Whitney : To ask the Chancellor of the Exchequer what is his latest estimate of the growth in total investment in 1988.

Mr. Major : Total investment was forecast in the Autumn Statement to increase in real terms by 12 per cent. in 1988.

43. Mr. Cousins : To ask the Chancellor of the Exchequer if he will make a statement on current foreign investment and capital flows into the United Kingdom.

52. Mr. Doran : To ask the Chancellor of the Exchequer if he will make a statement on current foreign investment and capital flows into the United Kingdom.

Mr. Major : I refer the hon. Member to the reply that I gave to the hon. Member for Bridgend (Mr. Griffiths) on 23 January at column 374.

46. Mr. Darling : To ask the Chancellor of the Exchequer if he will provide the latest available data on net flows of (a) direct investment, (b) portfolio investment and (c) banking flows into the United Kingdom in 1988.

Mr. Major : I refer the hon. Member to the reply that my hon. Friend the Economic Secretary gave earlier today to the hon. Member for Edinburgh, South (Mr. Griffiths).

Mr. Robert G. Hughes : To ask the Chancellor of the Exchequer what is his latest estimate of growth in total investment in 1988.

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Mr. Major : Total investment was forecast in the Autumn Statement to increase in real terms by 12 per cent. in 1988.

Labour Costs

23. Mr. Gregory : To ask the Chancellor of the Exchequer what is his latest information on the growth of unit labour costs in manufacturing industry.

79. Mr. Burns : To ask the Chancellor of the Exchequer what is his latest information on the growth of unit labour costs in manufacturing industry.

85. Sir Hal Miller : To ask the Chancellor of the Exchequer what is his latest information on the growth of unit labour costs in manufacturing industry.

89. Sir David Price : To ask the Chancellor of the Exchequer what is his latest information on the growth of unit labour costs in manufacturing industry.

Mr. Major : In the three months to November, manufacturing unit wage costs increased by 0.5 per cent. on the same period a year earlier.

Public Sector Surplus

24. Mr. Janman : To ask the Chancellor of the Exchequer what is his latest forecast for the level of public sector surplus in 1988-89.

Mr. Major : I refer my hon. Friend to the reply that my right hon. Friend the Chancellor of the Exchequer gave earlier today to my hon. Friend the Member for Bridlington (Mr. Townend).

Employment

26. Mr. Devlin : To ask the Chancellor of the Exchequer what has been the growth of (a) self-employment and (b) part-time employment in the United Kingdom since 1979.

Mr. Major : Between June 1979 and September 1988 the number of self- employed people in Great Britain rose by 60 per cent. to nearly 3 million. Over the same period, the part-time work force in employment rose by 30 per cent. to more than 6 million.

National Insurance

27. Mr. Ian Taylor : To ask the Chancellor of the Exchequer what discussions has he had with the institute for fiscal studies regarding reform of the national insurance contributions system.

Mr. Major : None, but I have noted their proposals.

Interest Rates

28. Mr. Speller : To ask the Chancellor of the Exchequer whether he will take steps to reduce bank interest rates and the mortgage interest rates.

Mr. Lilley : I refer my hon. Friend to the answer that I gave earlier today to the hon. Member for Tooting (Mr. Cox).

32. Mr. Matthew Taylor : To ask the Chancellor of the Exchequer if he will make a statement on his Department's estimate of the future level of interest rates and mortgage rates in the next three months.

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Mr. Lilley : Interest rates will remain as high as they need be, for as long as necessary, to bring inflationary pressures back under control. Mortgage rates are a matter for lenders to decide.

55. Mr. Latham : To ask the Chancellor of the Exchequer whether he will make a statement on the current level of interest rates.

57. Mr. Dunnachie : To ask the Chancellor of the Exchequer if he will make a statement on the current level of interest rates.

67. Mr. McAvoy : 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.

66. Mr. Kennedy : To ask the Chancellor of the Exchequer if he will assess the impact of current levels of interest rates on the economy.

Mr. Lilley : Higher interest rates will take some time to have their full effect, but there are already some clear signs that economic growth is moderating to sustainable rates. Higher interest rates encourage saving and discourage borrowing.

98. Mr. Wigley : To ask the Chancellor of the Exchequer on how many occasions during the past 12 months he has increased interest rates ; what is the total increase ; and what is his assessment of the total resultant increase in annual interest payments within the United Kingdom economy.

Mr. Lilley : Bank base rates were moved 13 times in the last year, both up and down, and increased by 4 per cent. in total. The impact on total interest payments within the United Kingdom economy will be less than proportionate as long-term interest rates have moved much less than short- term rates.

101. Mr. Patchett : To ask the Chancellor of the Exchequer what is his estimate of the extra borrowing costs to industry incurred by a rise of 1 per cent. in interest rates.

128. Mr. Morley : To ask the Chancellor of the Exchequer what is his estimate of the extra borrowing costs to industry incurred by a rise of 1 per cent. in interest rates.

Mr. Major : The cost to industrial and commercial companies of a one percentage point rise in United Kingdom short-term interest rates maintained for a full year is estimated to be about £400 million.

Government Expenditure

29. Dr. Goodson-Wickes : To ask the Chancellor of the Exchequer if he will make a statement on the outlook for general Government expenditure as a percentage of gross domestic product.

107. Mr. Neil Hamilton : To ask the Chancellor of the Exchequer if he will make a statement on the outlook for general Government expenditure as a percentage of gross domestic profit.

Mr. Major : My right hon. Friend the Chancellor of the Exchequer's Autumn Statement to the House on 1

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November 1988 set out the Government's plans for public spending. It noted that general government expenditure (excluding privatisation proceeds) in 1988-89 is expected to be below 40 per cent. of GDP for the first time in over 20 years ; and that over the next three years it is expected to fall further.

Bank of England (Governor)

30. Mr. Skinner : To ask the Chancellor of the Exchequer when he next intends to meet the Governor of the Bank of England ; and if he will make a statement.

Mr. Lilley : My right hon. Friend meets the governor from time to time to discuss a variety of topics.

60. Mr. Yeo : To ask the Chancellor of the Exchequer when he last met the Governor of the Bank of England ; and what subjects were discussed.

Mr. Lilley : My right hon. Friend meets the governor from time to time to discuss a variety of topics.

Balance of Payments

34. Mr. McLeish : To ask the Chancellor of the Exchequer if he will state the current balance of payments as a proportion of gross domestic product.

51. Dr. Godman : To ask the Chancellor of the Exchequer what is the current balance of payments as a proportion of gross domestic product.

105. Mr. Tom Clarke : To ask the Chancellor of the Exchequer if he will state the current balance of payments as a proportion of gross domestic profit.

Mr. Major : In the latest12 months for which figures are available the current account deficit as a proportion of gross domestic product was 2 per cent.

56. Mr. Strang : To ask the Chancellor of the Exchequer if he will list his policies which are aimed at reducing the balance of payments deficit ; and if he will make a statement.

Mr. Major : The rise in the current account deficit has primarily reflected the strength of domestic demand. The Government responded appropriately by tightening monetary policy and the effects of this are already beginning to bite, particularly in the housing market and in the retail sector. However, as my right hon. Friend the Chancellor has made clear, the current account deficit is likely to be one of the last indicators to respond.

88. Mr. Battle : To ask the Chancellor of the Exchequer if he will give his latest forecast for the United Kingdom's balance of payments.

99. Mr. Cohen : To ask the Chancellor of the Exchequer if he will give his latest forecast for the United Kingdom's balance of payments.

Mr. McFall : To ask the Chancellor of the Exchequer if he will give his latest forecast for the United Kingdom's balance of payments.

Mr. Major : The Autumn Statement forecast a current account deficit this year of £11 billion. There will be a new forecast published on Budget day in the usual way.

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Exports

37. Dr. Moonie : To ask the Chancellor of the Exchequer if he will provide his latest forecast for growth in the United Kingdom's visible exports in 1989.

74. Mr. Clelland : To ask the Chancellor of the Exchequer if he will provide his latest forecast for growth in the United Kingdom's visible exports in 1989.

Mr. Major : I refer the hon. Members to the reply that my right hon. Friend the Paymaster General gave earlier today to the hon. Member for Hemsworth (Mr. Buckley).

Overseas Assets

38. Mr. Bowis : To ask the Chancellor of the Exchequer what is his latest estimate of the stock of United Kingdom net overseas assets.

91. Mr. Jacques Arnold : To ask the Chancellor of the Exchequer what is his latest estimate of the stock of United Kingdom net overseas assets.

120. Mr. Beaumont-Dark : To ask the Chancellor of the Exchequer what is his latest estimate of the stock of United Kingdom net overseas assets.

127. Dr. Twinn : To ask the Chancellor of the Exchequer what is his latest estimate of the stock of United Kingdom net overseas assets.

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