House of Commons Hansard Debates for 6 Jul 1989

Mr. Lilley : The best guide to the underlying rate of inflation is provided by the RPI excluding mortgage interest payments, which currently stands at 6 per cent.

197. Mr. Foot : To ask the Chancellor of the Exchequer what is the current average rate of inflation in the Group of Seven countries.

Mr. Lawson : The current average rate of inflation in the Group of Seven countries is given in the weekly OECD publication "Current Economic Indicators", a copy of which is available in the House of Commons Library.

174. Mr. Flynn : To ask the Chancellor of the Exchequer what is the current average rate of inflation in the Group of Seven countries.

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193. Mr. Foulkes : To ask the Chancellor of the Exchequer what is the current average rate of inflation in the Group of Seven countries.

198. Mr. Fraser : To ask the Chancellor of the Exchequer what is the current average rate of inflation in the Group of Seven countries.

Mr. Lilley : The current average rate of inflation in the Group of Seven countries is given in the weekly OECD publication "Current Economic Indicators", a copy of which is available in the House of Commons Library.

86. Mr. Oakes : To ask the Chancellor of the Exchequer what is the current rate of inflation ; and what it was 12 months ago.

Mr. Lawson : The all-items RPI inflation rate was 8.3 per cent. in May of this year, and 4.2 per cent. in May 1988. The best guide to the underlying rate of inflation is provided by the RPI excluding mortgage interest payments, which currently stands at 6 per cent. In May 1988, the corresponding figure was 4.4 per cent.

54. Mr Eastham : To ask the Chancellor of the Exchequer if he will revise his latest forecast for the United Kingdom rate of inflation.

58. Mr. Dunnachie : To ask the Chancellor of the Exchequer if he will revise his latest forecast for the United Kingdom rate of inflation.

102. Mr Caborn : To ask the Chancellor of the Exchequer if he will revise his latest forecast for the United Kingdom rate of inflation.

122. Mr. Terry Davis : To ask the Chancellor of the Exchequer if he will revise his latest forecast for the United Kingdom rate of inflation.

Mr. Lilley : The Autumn Statement, to be published later this year, will include an economic forecast containing the outlook for inflation.

43. Mr. Cran : To ask the Chancellor of the Exchequer what is the highest level of inflation recorded this century ; when it was recorded ; and what is the current rate of inflation.

Mr. Lilley : The highest rate of inflation recorded this century was 26.9 per cent. in August 1975. The current rate of inflation is 8.3 per cent., and the underlying rate excluding mortgage interest payments is 6 per cent.

39. Mr. Parry : To ask the Chancellor of the Exchequer what is the current rate of inflation ; and what it was 12 months ago.

75. Mr. O'Brien : To ask the Chancellor of the Exchequer what is the current rate of inflation ; and what it was 12 months ago.

128. Mr. Patchett : To ask the Chancellor of the Exchequer what is the current rate of inflation ; and what it was 12 months ago.

Mr. Lilley : The all-items RPI inflation rate was 8.3 per cent. in May of this year, and 4.2 per cent. in May 1988. The best guide to the underlying rate of inflation is provided by the RPI excluding mortgage interest payments, which currently stands at 6 per cent. In may 1988, the corresponding figure was 4.4 per cent.

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40. Mr. Terry Field : To ask the Chancellor of the Exchequer what is the current rate of inflation in the European Community.

144. Mr. Fatchett : To ask the Chancellor of the Exchequer what is the current rate of inflation in the European Community.

158. Mr. Flannery : To ask the Chancellor of the Exchequer what is the current rate of inflation in the European Community.

164. Mr. Frank Field : To ask the Chancellor of the Exchequer what is the current rate of inflation in the European Community.

Mr. Lilley : The current average rate of inflation in the European Community countries is given in the monthly OECD publication "Main Economic Indicators", a copy of which is available in the House of Commons Library.

Earnings

28. Sir George Young : To ask the Chancellor of the Exchequer what was the percentage increase in the real take-home pay of a married man on male average earnings with two children between 1978-79 and 1989-90.

187. Mr. David Martin : To ask the Chancellor of the Exchequer what was the percentage increase in the real take-home pay of a married man on male average earnings with two children between 1978-79 and 1989-90.

Mr. Norman Lamont : Real take-home pay for a married man with two children on male average earnings is 32 per cent. higher in 1989-90 than in 1978-79.

141. Mr. Baldry : To ask the Chancellor of the Exchequer what was the percentage increase in the real take-home pay of a married man on half average earnings with two children between 1978-79 and 1989-90.

Mr. Norman Lamont : Real take-home pay for a married man with two children on half average earnings is 25 per cent higher in 1989-90 than in 1978-79.

83. Mr. Roger King : To ask the Chancellor of the Exchequer what was the percentage increase in the real take-home pay of a married man on three quarters of male average earnings with two children between 1978-79 and 1989-90.

171. Mr. David Shaw : To ask the Chancellor of the Exchequer what was the percentage increase in the real take-home pay of a married man on three quarters of male average earnings with two children between 1978-79 and 1989-90.

Mr. Norman Lamont : Real take-home pay for a married man with two children on three quarters of male average earnings is 29 per cent. higher in 1989-90 than in 1978-79.

45. Mr. Nellist : To ask the Chancellor of the Exchequer what proportion of gross earnings a one-earner family with two children on average earnings paid in value added tax in (a) 1979 and (b) 1989.

94. Ms. Short : To ask the Chancellor of the Exchequer what proportion of gross earnings a one-earner family with two children on average earnings paid in value added tax in (a) 1979 and (b) 1989.

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Mr. Lilley : A married man on average male earnings, with two children would have paid approximately 2.7 per cent. of his earnings in VAT in 1978-79 and 5 per cent. in 1988-89.

Income Tax

30. Mr. Carrington : To ask the Chancellor of the Exchequer what would be the effect on a person with a taxable income of £40,000 of raising the highest rate of income tax to 50p in the pound.

72. Miss Widdecombe : To ask the Chancellor of the Exchequer what would be the effect on a person with a taxable income of £40,000 of raising the highest rate of income tax to 50p in the pound.

180. Mr. Fishburn : To ask the Chancellor of the Exchequer what would be the effect on a person with a taxable income of £40,000 of raising the highest rate of income tax to 50p in the pound.

Mr. Norman Lamont : An increase in the higher rate of income tax to 50p would increase the annual income tax liability of a married man with gross annual income liable to tax of £40,000 by £1,492.50. This figure assumes that the taxpayer is entitled to no income tax relief or allowance other than the married man's allowance.

150. Mr. Ian Taylor : To ask the Chancellor of the Exchequer what is his estimate of the extra yield of income tax if the basic rate were raised to 33 per cent.

190. Mr. Key : To ask the Chancellor of the Exchequer what is his estimate of the extra yield of income tax if the basic rate were raised to 33 per cent.

Mr. Norman Lamont : I refer my hon. Friends to the reply I gave earlier today to my hon. Friend the Member for Walthamstow (Mr. Summerson).

91. Mr. Gregory : To ask the Chancellor of the Exchequer what representations he has received on the basic rate of income tax.

Mr. Norman Lamont : My right hon. Friend receives various representations on this subject from time to time.

Mr. Yeo : To ask the Chancellor of the Exchequer what is his estimate of the number of people who would face a higher marginal rate of tax and national insurance if the top rate of income tax were raised to 50 per cent. and the employees' national insurance limit were abolished.

Mr. Norman Lamont : I refer my hon. Friend to the reply I gave earlier today to my hon. Friend the Member for Gillingham (Mr. Couchman).

Economic Advisers

32. Mr. John P. Smith : To ask the Chancellor of the Exchequer how many people are employed at the Treasury to advise him on exchange rate policy.

97. Mr. Snape : To ask the Chancellor of the Exchequer how many people are employed at the Treasury to advise him on exchange rate policy.

105. Mr. Sedgemore : To ask the Chancellor of the Exchequer how many people are employed at the Treasury to advise him on exchange rate policy.

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179. Mr. Wilson : To ask the Chancellor of the Exchequer how many people are employed at the Treasury to advise him on exchange rate policy.

Mr. Brooke : Her Majesty's Treasury's monetary group, responsible for advice on short-term interest rates, the exchange rate and Government funding policy, employs 24 people.

38. Mrs. Ann Taylor : To ask the Chancellor of the Exchequer if he will list his economic advisers in the Treasury.

74. Mr. Doran : To ask the Chancellor of the Exchequer if he will list his economic advisers.

88. Mr. Galbraith : To ask the Chancellor of the Exchequer if he will list his economic advisers.

90. Mr. Sheerman : To ask the Chancellor of the Exchequer if he will list his economic advisers at the Treasury.

93. Mr. Lofthouse : To ask the Chancellor of the Exchequer if he will list his economic advisers.

Mr. Brooke : I refer the hon. Members to the reply my right hon. Friend the Chief Secretary gave earlier today to the hon. Member for Bradford, North (Mr. Wall).

Employment

3. Mr. Watts : To ask the Chancellor of the Exchequer what has been the total increase in employment in the United Kingdom economy and in each of the other major European countries since 1983.

155. Mr. Day : To ask the Chancellor of the Exchequer what has been the total increase in employment in the United Kingdom economy and in each of the other major European countries since 1983.

156. Mr. Norris : To ask the Chancellor of the Exchequer what has been the total increase in employment in the United Kingdom economy and in each of the other major European countries since 1983.

Mr. Major : The information is as follows :


Growth in Total Employment 1983-88                                      

                  |Percentage growth|000s                               

------------------------------------------------------------------------

United Kingdom    |11.0             |2,589                              

Germany           |3.2              |820                                

France            |-0.2             |-50                                

Italy             |4.2              |930                                

Spain             |5.5              |620                                

Netherlands       |5.6              |250                                

Belgium           |3.6              |130                                

Source: Department of Employment for United Kingdom (figures are for    

increase between June 1983 and June 1988). Other countries' figures     

calculated from estimates of growth in employment given in June 1989    

OECD Economic Outlook (estimates rounded to nearest 10,000).

103. Mr. Riddick : To ask the Chancellor of the Exchequer what has been the effect on public expenditure of the fall in the level of unemployment over the last two and half years ; and if he will make a statement.

Mr. Major : As a result of the fall in unemployment between January 1987 and May 1989, public expenditure

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on benefits for the unemployed has been approximately £2 billion lower than it would otherwise have been over this period.

Exchange Rate

34. Mr. Pendry : To ask the Chancellor of the Exchequer what mechanisms exist for medium or long-term alteration of the exchange rate.

101. Dr. Moonie : To ask the Chancellor of the Exchequer what mechanisms exist for medium or long-term alteration of the exchange rate.

104. Mr. Pike : To ask the Chancellor of the Exchequer what mechanisms exist for medium or long-term alteration of the exchange rate.

119. Mr. Ray Powell : To ask the Chancellor of the Exchequer what mechanisms exist for medium or long-term alteration of the exchange rate.

Mr. Lilley : My right hon. Friend the Chancellor of the Exchequer has emphasised that the Government are determined not to allow their firm monetary stance to be undermined by a depreciation of the exchange rate.

69. Mr. Morgan : To ask the Chancellor of the Exchequer what steps Her Majesty's Government are taking to stabilise the exchange rate ; and if he will make a statement.

100. Mr. Darling : To ask the Chancellor of the Exchequer what steps Her Majesty's Government are taking to stabilise the exchange rate ; and if he will make a statement.

136. Dr. Godman : To ask the Chancellor of the Exchequer what steps Her Majesty's Government are taking to stabilise the exchange rate ; and if he will make a statement.

Mr. Lilley : I refer the hon. Members to the reply my right hon. Friend the Chancellor of the Exchequer gave to the hon. Member for Llanelli (Mr. Davies) earlier today.

59. Mr. Haynes : To ask the Chancellor of the Exchequer what was the pound sterling/deutschmark exchange rate 12 months ago ; and what it is now.

66. Mr. Terry Lewis : To ask the Chancellor of the Exchequer what was the pound sterling/deutschmark exchange rate 12 months ago ; and what it is at present.

114. Mr. Leadbitter : To ask the Chancellor of the Exchequer what was the pound sterling/deutschmark exchange rate 12 months ago ; and what it is at present.

116. Mr. Hood : To ask the Chancellor of the Exchequer what was the pound sterling/deutschmark exchange rate 12 months ago ; and what it is now.

Mr. Lilley : Sterling is currently around 1er cent. lower against the deutschmark than 12 months ago.

Investment

41. Mr. Burt : To ask the Chancellor of the Exchequer what share of gross domestic product was accounted for by business investment in 1988.

130. Mr. Nicholas Winterton : To ask the Chancellor of the Exchequer what share of gross domestic product was accounted for by business investment in 1988.

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153. Mr. Simon Coombs : To ask the Chancellor of the Exchequer what share of gross domestic product was accounted for by business investment in 1988.

Mr. Major : Business investment, as defined in the "Financial Statement and Budget Report", accounted for 14.6 per cent. of GDP in 1988. This is the highest proportion of GDP ever recorded.

167. Mr. Boswell : To ask the Chancellor of the Exchequer if he will set out in tabular form the growth of total investment in the United Kingdom in the 1980s, together with the comparable figures for each of the other major European countries.

Mr. Lilley : I refer my hon. Friend to the answer I gave to my hon. Friend the Member for Lancashire, West (Mr. Hind) on 3 July at column 32.

International Monetary Fund

44. Mr. Gow : To ask the Chancellor of the Exchequer when he next expects to meet the managing director of the International Monetary Fund ; and what matters he expects to discuss.

Mr. Lilley : My right hon. Friend the Chancellor expects to see Mr. Camdessus on the occasion of the IMF interim committee meeting in Washington in September, when a wide range of matters will be discussed.

Mr. Dalyell : To ask the Chancellor of the Exchequer if he will make a statement on the most recent discussion of the International Monetary Fund on help to (a) Guyana, (b) Cameroon, (c) Malaysia and (d) Sri Lanka.

Mr. Lilley : The discussions to which the hon. Member refers are confidential. Cameroon and Sri Lanka have current fund programmes. Malaysia has not applied for IMF assistance recently. Guyana has arrears to the fund but is currently following a fund-monitored programme with the objective of paying these off.

Public Sector Debt Repayment

51. Mrs. Gorman : To ask the Chancellor of the Exchequer if he will make a statement on the public sector debt repayment in 1988-89.

189. Mr. Latham : To ask the Chancellor of the Exchequer if he will make a statement on the public sector debt repayment in 1988-89.

Mr. Lilley : The public sector debt repayment in 1988-89 was £14.4 billion, equivalent to 3 per cent. of GDP. This is the largest net repayment since records on a comparable basis have been kept. A net repayment of around £14 billion has been budgeted for in 1989-90, the third successive year of debt repayment.

63. Mr. Brandon-Bravo : To ask the Chancellor of the Exchequer how much of the public debt he estimates will have been repaid by the end of the financial year 1989-90.

115. Mr. Evennett : To ask the Chancellor of the Exchequer how much of the public debt will have been repaid by the end of the financial year 1989-90.

Mr. Lilley : It is estimated that roughly one sixth of the net public sector debt that has accumulated over several centuries will have been repaid in the three years to 1989-90.

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