The Economy

Part of Orders of the Day — Debate on the Address – in the House of Commons at 4:13 pm on 7 November 1991.

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Photo of Mr John Smith Mr John Smith , Monklands East 4:13, 7 November 1991

But it was a fall from a very high level of inflation. In case the hon. Gentleman's purpose is to divert me from the consequences of the recession, let me remind him that I was referring to the 85,000 families who have lost their homes.

Most of all, however, one should have regard for the 750,000 people who have lost their jobs since last year's autumn statement, which blithely proceeded on the wholly mistaken assumption that there would be no increase in unemployment. Once again—as the Chancellor revealed in a reply yesterday to my hon. Friend the Member for Durham, North (Mr. Radice)—the Government are assuming, in this year's autumn statement, that there will be no rise at all in unemployment in the year ahead. Frankly, no one should take that seriously. None of the economic commentators who the Chancellor claims agree with him in his assessment is prepared to go along with that assumption. That is an error right at the heart of all the calculations in the autumn statement, just as it was an error right at the heart of all the calculations in last year's autumn statement.