Orders of the Day — The Economy

Part of the debate – in the House of Commons at 6:33 pm on 29th November 1988.

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Photo of Mr Terence Higgins Mr Terence Higgins , Worthing 6:33 pm, 29th November 1988

I shall not give way as I always get worried when Privy Councillors go on too long. In any event, I am about to conclude.

The overall position that the Chancellor has adopted on interest rate policy is correct. The current fiscal framework, which shows that we have a massive surplus compared with previous periods, is the appropriate one for the present time.

It is odd that the Opposition appear to be arguing that we should have an even bigger surplus because there were too many tax cuts in the Budget. As the late Iain Macleod always said, Labour Governments put up taxes and Conservative Governments reduce taxes. That is the correct strategic approach. Obviously we shall need to review taxation in the context of the next Budget and I look forward to my right hon. Friend presenting it.