The Rt. Hon. Sir John Major KG CH

Category: Chief Secretary (1987-1989)

  • Mr Major’s Written Parliamentary Answer on Fixed Capital Formation – 3 February 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Fixed Capital Formation on 3rd February 1989.

    Mr. Nigel Griffiths To ask the Chancellor of the Exchequer if he will give total gross domestic fixed capital formation for the United Kingdom at market prices as a percentage of GDP(E) at market prices for each year since 1959 to the most recent available date, together with the average for(a) 1974 to 1979 and (b) 1979 to 1987 inclusive.

    Mr. Major This information may be obtained from the Central Statistical Office databank, a collection of macroeconomic time series in computer readable form to which the House of Commons Library has direct access.

  • Mr Major’s Written Parliamentary Answer on Executive Agencies – 1 February 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Executive Agencies on 1st February 1989.

    Mr. Hayward To ask the Chancellor of the Exchequer whether the provisions of the Government Trading Funds Act 1973 will be applied to next steps executive agencies.

    Mr. Major Trading funds can already be created for agencies which meet the requirements in the Government Trading Funds Act 1973. However, some bodies including those which are directed by statute to provide a service and where the fees are fixed by regulation, are at present outside the scope of the 1973 Act. Some agencies which are at present outside its scope would be able to operate more efficiently under the more commercial regime. We therefore propose to bring forward legislation at the earliest opportunity so that trading or agency funds will be available in such cases. This change would add significantly to the range of financial regimes available to agencies and make a significant contribution to the implementation of the Government’s next steps policy.

  • Mr Major’s Written Parliamentary Answer on Tax and National Insurance Revenue – 27 January 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Tax and National Insurance Revenue on 27th January 1989.

    Mr. Ralph Howell To ask the Chancellor of the Exchequer what has been the overall revenue from taxation plus national insurance contribution in cash terms, real terms, and as a percentage of gross domestic product for each period of five years since 1959.

    Mr. Major The available information is as follows:

    Total revenue from taxation plus national insurance contributions in current prices, real terms and as a percentage of GDP

    Five year averages £ billion | Total taxes and NICs (current prices – prices prevailing at the time) | Total taxes and NICs in real terms (1987–88 prices) | Total taxes and NICs as a per cent. of GDP
    1963–64 to 1967–68 11.4 81.1 31.1
    1968–69 to 1972–73 19.0 103.9 34.9
    1973–74 to 1977–78 39.1 117.1 35.2
    1978–79 to 1982–83 86.0 131.7 37.0
    1983–84 to 1987–88 139.2 152.2 38.4

    Source: CSO, Financial Statistics Economic Trends.

  • Mr Major’s Written Parliamentary Answer on Labour Statistics – 26 January 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Labour Statistics on 26th January 1989.

    Mr. William Powell To ask the Chancellor of the Exchequer in which regions adult unemployment has fallen over the past year.

    Mr. Burt To ask the Chancellor of the Exchequer in which regions adult unemployment has fallen over the past year.

    Mr. Major Adult unemployment has fallen sharply in every region of the United Kingdom over the last year, but fastest in the west midlands, the north west and Wales.

    Mr. Michael Brown To ask the Chancellor of the Exchequer what has been the fall in the number of long-term unemployed aged 18 to 24 years since October 1986.

    Mr. Gerald Bowden To ask the Chancellor of the Exchequer what has been the fall in the number of long-term unemployed aged 18 to 24 years since October 1986.

    Mr. Andy Stewart To ask the Chancellor of the Exchequer what has been the fall in the number of long-term unemployed aged 18 to 24 years since October 1986.

    Mr. Major The latest available figures, for October 1988, show that the number of long-term unemployed aged between 18 and 24 has fallen by one half since October 1986.

  • Mr Major’s Written Parliamentary Answer on Income Statistics – 26 January 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Income Statistics on 26th January 1989.

    Mr. Wallace To ask the Chancellor of the Exchequer if there are any plans to change the system of collation of national income statistics.

    Mr. Major The CSO are always looking for ways to improve the accuracy and completeness of the national accounts. The Government established last summer a review to make recommendations for cost-effective improvements. It has now been completed and a comprehensive report will be published in due course.

  • Mr Major’s Parliamentary Answer on Manufacturing Investment – 26 January 1989

    Below is the text of Mr Major’s response on Manufacturing Investment, made on 26th January 1989 in the House of Commons.

    Mr. Key To ask the Chancellor of the Exchequer what is his latest information on the investment intentions of manufacturing industry.

    Mr. Anthony Coombs To ask the Chancellor of the Exchequer what is his latest information on the investment intentions of manufacturing industry.

    Mr. Major The Department of Trade and Industry’s investment intentions survey published in December showed that manufacturing investment is expected to grow by 11 per cent. in 1989.

    Mr. Key Does not that reply indicate that manufacturing industry understands far better than the Opposition the opportunities generated in the economy by this Government? Can my right hon. Friend say by how much manufacturing investment has grown over the past five years or so?

    Mr. Major My hon. Friend is entirely correct. Manufacturing investment in real terms reached an all-time peak in the second quarter of 1988, and is expected to increase substantially next year.

    Mr. Anthony Coombs I welcome the buoyancy of manufacturing investment intentions, especially as last year there was the largest increase in manufacturing investment for 25 years. Is my right hon. Friend aware of a recent survey on industrial space take – up throughout the country which indicated that more than one third of the total industrial space taken up last year was in the West Midlands? Does not that show clearly and unequivocally how geographically broadly based the economic expansion of this country has become?

    Mr. Major Indeed it does, as does the fact that unemployment has fallen in all the regions in the past 29 months. The last CBI survey shows clearly that investment intentions remain strong for the future.

    Mr. Win Griffiths Is the Minister aware that, despite high investment in industry, the CBI survey pointed out that, for the first time for three years, more exporters are gloomy about prospects than before, and that in Wales more than one in three manufacturers who export are reporting reductions in their orders because of the high interest rate policy? Are we not suffering because of the Chancellor’s desire to give money hand over fist to the wealthy?

    Mr. Major Manufacturers in Wales and elsewhere recognise clearly that renewed inflation is far more damaging to them than is the medicine necessary to ensure no renewed inflation.

    As regards the CBI survey, the hon. Gentleman quoted very selectively. The CBI said quite clearly that the figures indicate that strong manufacturing investment is set to continue.

  • Mr Major’s Parliamentary Answer on Balance of Payments – 26 January 1989

    Below is the text of Mr Major’s response on Balance of Payments, made on 26th January 1989 in the House of Commons.

    Mr. McLeish To ask the Chancellor of the Exchequer if he will state the current balance of payments as a proportion of gross domestic product.

    Dr. Godman To ask the Chancellor of the Exchequer what is the current balance of payments as a proportion of gross domestic product.

    Mr. Tom Clarke To ask the Chancellor of the Exchequer if he will state the current balance of payments as a proportion of gross domestic profit.

    Mr. Major In the latest 12 months for which figures are available the current account deficit as a proportion of gross domestic product was 2½ per cent.

    Mr. Strang To ask the Chancellor of the Exchequer if he will list his policies which are aimed at reducing the balance of payments deficit; and if he will make a statement.

    Mr. Major The rise in the current account deficit has primarily reflected the strength of domestic demand. The Government responded appropriately by tightening monetary policy and the effects of this are already beginning to bite, particularly in the housing market and in the retail sector. However, as my right hon. Friend the Chancellor has made clear, the current account deficit is likely to be one of the last indicators to respond.

    Mr. Battle To ask the Chancellor of the Exchequer if he will give his latest forecast for the United Kingdom’s balance of payments.

    Mr. Cohen To ask the Chancellor of the Exchequer if he will give his latest forecast for the United Kingdom’s balance of payments.

    Mr. McFall To ask the Chancellor of the Exchequer if he will give his latest forecast for the United Kingdom’s balance of payments.

    Mr. Major The Autumn Statement forecast a current account deficit this year of £11 billion. There will be a new forecast published on Budget day in the usual way.

  • Mr Major’s Parliamentary Answer on Consumer Credit – 26 January 1989

    Below is the text of Mr Major’s response on Consumer Credit, made on 26th January 1989 in the House of Commons.

    Mr. Beith To ask the Chancellor of the Exchequer what estimate he has made of the impact of his interest rate policy on consumer credit.

    Mr. Major By increasing the cost of credit, rises in interest rates exert downward pressure on the growth of consumer credit.

    Mr. Beith Are Treasury Ministers sufficiently confident of the success of their policies to tell us that they will not need to raise interest rates further? Have they looked at the indices that they now use to argue that they have got control of the situation? Last year, those indices were showing even more clearly that there would not be a credit boom. If Ministers believed them then, that may be the explanation for what went wrong with the Budget strategy. Will Treasury Ministers consider alternative measures that are available to broaden the attack on inflation without going to the credit control measures favoured by the right hon. and learned Member for Monklands, East (Mr. Smith), whose return we so much welcome?

    Mr. Major No Minister can give the hon. Gentleman the firm assertion which he asked for at the beginning of his question. The problem at the moment is excess demand. The way to control the growth of credit is to increase its cost. That is what we have done. We are confident that it can and will work.

    Mr. Neil Hamilton Will my right hon. Friend remind the House that last spring Opposition Members were calling for even faster reductions in interest rates which would have fuelled the consumer boom even more? Now they are claiming the benefit of hindsight and they say that we were moving too fast. Their economic policy does not add up.

    Mr. Major I certainly recall that. I also recall that Opposition Members were asking for more public spending both last autumn and earlier this year. That would not have helped, either.

  • Mr Major’s Parliamentary Answer on Investment – 26 January 1989

    Below is the text of Mr Major’s response on Investment, made on 26th January 1989 in the House of Commons.

    Mr. Cran To ask the Chancellor of the Exchequer what was the total level of investment in the United Kingdom in 1988 and 1987; and what was the change in the level of consumption over the same period.

    The Chief Secretary to the Treasury (Mr. John Major) Between 1987 and 1988 investment is expected to have grown by at least 12 per cent., twice as fast as consumption.

    Mr. Cran Does my right hon. Friend agree that business investment in the years 1986–88 rose by the almost unprecedented figure of 20 per cent. in real terms, and exceeded that of the United States, Germany and France? Does he agree that that massive investment programme confirms the economic well-being of the United Kingdom, even in terms that the economic illiterates of the Opposition can understand?

    Mr. Major I am not sure about my hon. Friend’s last point, but I can certainly confirm his first point. Since 1981, business investment in the United Kingdom has grown faster than in any other major industrialised country and any country in the European Community.

    Mr. Foulkes Will the Chief Secretary come down to earth? Is he aware that the National Savings Bank has introduced regulations so that the minimum investment is now £5? That is causing great concern among pensioners and Age Concern Scotland as many pensioners invest £1, £2 or £3 regularly and will be unable to do so when the regulation comes into force. Will the Chief Secretary intervene and see whether some action can be taken to reverse that regrettable decision?

    Mr. Major I hear and understand what the hon. Gentleman says. I have no direct response to his point except that he needs to bear in mind that throughout the economy as a whole investment is growing and that in our judgment, and in the judgment of the independent surveys, it will continue to grow. That is thoroughly desirable.

    Sir William Clark Does my right hon. Friend agree that the Opposition’s criticism of the economic handling of our country is rather hypocritical when one bears in mind that under their regime we were at the bottom of every economic league not only in Europe but in the world and now we are at the top?

    Mr. Major As usual, my hon. Friend is entirely right. These are painful waters for the Opposition and I hesitate to dwell on them any longer.

  • Mr Major’s Written Parliamentary Answer on Employment – 26 January 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Employment on 26th January 1989.

    Mr. David Porter To ask the Chancellor of the Exchequer what has been the growth of (a) self-employment and (b) part-time employment in the United Kingdom since 1979.

    Mr. Couchman To ask the Chancellor of the Exchequer what has been the growth of (a) self-employment and (b) part-time employment in the United Kingdom since 1979.

    Mr. Major Between June 1979 and September 1988 the number of self-employed people in Great Britain rose by 60 per cent. to nearly 3 million. Over the same period, the part-time work force in employment rose by 30 per cent. to over 6 million.