Orders of the Day — Unemployment and the Economy

Part of the debate – in the House of Commons at 4:52 pm on 10 November 1982.

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Photo of Mr Geoffrey Howe Mr Geoffrey Howe , East Surrey 4:52, 10 November 1982

I shall not give way.

I told the House on Monday: For all employers, after taking account of the reduction in contracted-out rebate announced in March this year, the total payments would have been about £12·8 billion. They will now be £12·1 billion. That represents a reduction of 5½ per cent. and therefore makes a significant contribution to the competitiveness of British industry".—[Official Report, 8 November 1982; Vol. 31, c. 325.] That observation still stands. Indeed, it is remarkable that the right hon. Gentleman—who formed part of the Government who, by increases in national insurance contributions and the introduction of and increases in the national insurance surcharge, added 5 per cent. to employers' costs—should make this case against me now, when the net effect of the changes that we have made is to reduce those costs by a net figure of 1½per cent. Indeed, for the right hon. Gentleman to say that is bare-faced effrontery.

We have announced other measures this week to help to reduce the costs of industry—for example, ending the regional development grant deferment. The reduction in gas prices that will be achieved by the announcement made by the British Gas Corporation