Mr Major’s Written Parliamentary Answer on Inflation – 8 December 1988

Below is the text of Mr Major’s written Parliamentary Answer on Inflation on 8th December 1988.

Mr. Alton To ask the Chancellor of the Exchequer what action he intends to take to make up the shortfall on spending experienced by Departments committed to projects whose costs have risen through increased inflation.

Mr. Major New plans were announced by my right hon. Friend the Chancellor of the Exchequer in his Autumn Statement on 1 November. Although the expected level of inflation was a factor that was considered when setting these plans, public expenditure is planned in cash terms and in general there is no automatic adjustment for higher prices. The planning total for 1989-90 remains £167.1 billion, the same level published in the last public expenditure White Paper. Within that unchanged total there is provision for substantial increases in spending on priority programmes.