Orders of the Day — Autumn Statement

Part of the debate – in the House of Commons at 4:28 pm on 19 November 1992.

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Photo of Mr Michael Portillo Mr Michael Portillo , Enfield, Southgate 4:28, 19 November 1992

May I first welcome to her new position the hon. Member for Peckham (Ms. Harman)? She is speaking for the first time today in her role as Chief Secretary—[HON. MEMBERS: "Shadow."]—shadow Chief Secretary. She brings with her the reputation she acquired, as health spokesman, of being a real big spender. Her translation to her present role where she is responsible for keeping tabs on the promises made by the Labour party is a case not so much of a poacher turning gamekeeper as of a fox being put in charge of a chicken coop—or a chicken co-op, as the hon. Lady would call it.

The achievement of last week's autumn statement is to create the conditions for a return of confidence and so to remove a barrier to growth in our economy. The announcements made by my right hon. Friend the Chancellor of the Exchequer provide the strongest reassurance that the Government will maintain the most rigorous control of public spending and have evolved a robust medium-term strategy for limiting its growth.

Equally, his statement provides well targeted encouragement to sectors of the economy badly hit by the recession. The statement demonstrates a finely judged balance between the toughness required at a time when national finances are under strain and a willingness to respond prudently to the needs of business at a time of prolonged recession.

Despite all the huffing and puffing from the Opposition, the economic fundamentals today are promising. First, inflation has fallen from nearly 11 per cent. to under 4 per cent. Second, we now have the lowest interest rates in the European Community and the lowest seen here for 15 years. Thirdly, our exchange rate makes our products highly competitive, whether we are selling in overseas markets or in home markets against overseas products.