Productivity and Earnings

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 21st April 1970.

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Photo of Mr David Lane Mr David Lane , Cambridge 12:00 am, 21st April 1970

asked the Chancellor of the Exchequer what percentage increases in productivity and in earnings, respectively, during 1970–71 he assumed when framing his Budget.

Photo of Mr Jack Diamond Mr Jack Diamond , Gloucester

The forecasts published in the Financial Statement and Budget Report 1970–71 contain estimates of expenditure, imports and gross domestic product at 1963 prices; forecasts of earnings and employment have never been provided.

Photo of Mr David Lane Mr David Lane , Cambridge

Is not it clear that the relationship between these prospective increases will be highly inflationary? Will the right hon. Gentleman now tell us what the Chancellor overlooked giving us last night, his judgment of the likely trend of prices during the rest of the financial year?

Photo of Mr Jack Diamond Mr Jack Diamond , Gloucester

My right hon. Friend took all these matters into account in his judgment, and he also took into account three years ago that it would be helpful to the House if it had the kind of information which the hon. Gentleman's Government never provided. He therefore provided that information, and I am sure that it has been very interesting and helpful to the House.