The Rt. Hon. Sir John Major KG CH

Tag: 1988

  • Mr Major’s Written Parliamentary Answer on Business Investment – 14 April 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Business Investment on 14th April 1988.

    Mr. David Davis To ask the Chancellor of the Exchequer what is his latest forecast for the growth of business investment over the coming year.

    Mr. Conway To ask the Chancellor of the Exchequer what is his latest forecast for the growth of business investment over the coming year.

    Mr. Major As the Chancellor stated in his Budget forecast, total business investment is expected to grow by 9 per cent. in 1988.

  • Mr Major’s Written Parliamentary Answer on Manufactured Goods – 14 April 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Manufactured Goods on 14th April 1988.

    Mr. Wilson To ask the Chancellor of the Exchequer what was the balance of payments deficit or surplus for manufactured goods in 1979; and what he expects this deficit or surplus to be in 1988.

    Mr. Bradley To ask the Chancellor of the Exchequer what was the balance of payments deficit or surplus for manufactured goods in 1979; and what he expects this deficit or surplus to be in 1988.

    Mrs. Fyfe To ask the Chancellor of the Exchequer what was the balance of payments deficit or surplus for manufactured goods in 1979; and what he expects this deficit or surplus to be in 1988.

    Mr. Major In 1979 the balance of trade in manufactured goods was a surplus of £2.7 billion. The forecast published at the time of the Budget was for a deficit on trade in manufactures of £8.5 billion in 1988. The current account as a whole is expected to show a small deficit of £4 billion in 1988, less than 1 per cent. of GDP.

  • Mr Major’s Written Parliamentary Answer on Economic Growth – 14 April 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Economic Growth on 14th April 1988.

    Mr. Greg Knight To ask the Chancellor of the Exchequer what has been the average rate of growth in the British economy (a) for the last five years and (b) for the period 1974 to 1979.

    Mr. Major Over the last five years the average annual rate of growth has been 3.3 per cent., considerably above the 2 per cent. average from 1974 to 1979.

    Mr. Bellingham To ask the Chancellor of the Exchequer what was the last year before 1987 when real growth in the economy exceeded the rate of inflation.

    Mr. Charles Wardle To ask the Chancellor of the Exchequer what was the last year before 1987 when real growth in the economy exceeded the rate of inflation.

    Mr. Major The last year, prior to 1987, in which output growth exceeded inflation was 1964.

    Mr. Cash To ask the Chancellor of the Exchequer for how many years the rate of economic growth in the United Kingdom has averaged 3 per cent. or more.

    Mr. Major I refer my hon. Friend to the answer the Economic Secretary gave earlier today to my hon. Friend the Member for Gedling (Mr. Mitchell).

  • Mr Major’s Written Parliamentary Answer on Labour Statistics – 14 April 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Labour Statistics on 14th April 1988.

    Mr. Brazier To ask the Chancellor of the Exchequer what has been the rise in employment in the United Kingdom economy since 1983.

    Mr. Madel To ask the Chancellor of the Exchequer what has been the rise in employment in the United Kingdom economy since 1983.

    Mr. Sumberg To ask the Chancellor of the Exchequer what has been the rise in employment in the United Kingdom economy since 1983.

    Mr. Major Employment in the United Kingdom has risen by 1.5 million since 1983.

    Mr. Rowe To ask the Chancellor of the Exchequer by how much unemployment has fallen in the United Kingdom economy over the past year.

    Mr. Fallon To ask the Chancellor of the Exchequer by how much unemployment has fallen in the United Kingdom economy over the past year.

    Mr. Harris To ask the Chancellor of the Exchequer by how much unemployment has fallen in the United Kingdom economy over the past year.

    Mr. Major Unemployment has fallen by 535,000 over the past year. It has now fallen for 19 months in succession since July 1986, by 679,000 in total, the largest fall since the war.

  • Mr Major’s Written Parliamentary Answer on Exchange Rates – 14 April 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Exchange Rates on 14th April 1988.

    Mr. Beaumont-Dark To ask the Chancellor of the Exchequer what assessment he has made of the effect the exchange rate has on the performance of the economy.

    Mr. Major The exchange rate is a major factor in the determination of overall monetary conditions in the economy which are set out to maintain downward pressure on inflation. Increases in domestic costs will not be accommodated by exchange rate depreciation.

  • Mr Major’s Written Parliamentary Answer on Policy Work – 12 April 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Policy Work on 12th April 1988.

    Mr. Quentin Davies To ask the Chancellor of the Exchequer what progress has been made in applying the financial management initiative to policy work.

    Mr. Major Since my predecessor’s announcement of 10 June 1985, at column 294, Departments have made considerable improvements, particularly in evaluation. The Treasury has today published “Policy Evaluation : A Guide for Managers”, which builds on the work which has been done in Departments and which sets out the approach which has been found most useful. I am arranging for copies of this guide, and of the accompanying press release which describes the background, to be sent to the hon. Member and to be placed in the Library of the House.

  • Mr Major’s Speech to the Institute of Directors – 11 April 1988

    Below are extracts from Mr Major’s speech in Edinburgh on 11th April 1988 to the Institute of Directors.

    CHIEF SECRETARY TO THE TREASURY

    The new Social Security system represents a much needed and long overdue simplification. At the heart of the reform is the ending of the discrimination between low income people in work and those not in work on benefit. That is critical to an enterprise economy. We have ended the absurdity whereby someone obtaining a pay rise could actually lose more in tax and benefits than the increase in income.
    Moreover, Family Credit will make it more worthwhile for many unemployed people with families to take a job.

    We are also targeting help better – at families with children and the disabled in particular, while providing an extra 200 million pounds to ensure that no-one on Income Support will receive less in cash terms than they used to on supplementary benefit.

    It is misleading to suggest that there is a contradiction between the Budget on the one hand and the social security reforms on the other. The Budget will help build greater prosperity. That is essential if we are to have the resources to meet our obligations to those in need. We have been able to reduce taxes in the Budget. But only after we had already planned to spend 2 billion pounds more on social security. That expenditure was committed before tax rates were cut. Since 1979 both Supplementary Benefit and the Family Income Supplement have been protected against inflation. And that has, rightly, been given priority over tax reductions when necessary.

    One fact is clear. Unless the economy is sound and growing we cannot afford the improvements in social security and other services that we all wish to see. We cannot protect the poor if the country is poor. As we look to the future we can see growing demands on social security and social services, not least because of demographic changes. We must build prosperity now if we are to discharge these obligations, as we are determined to do. To build that growth is the basis of our policy. And the success of that policy is the basis of our capacity to provide for those in need.

    Any reform to a cumbersome and poorly targeted system, which has grown up piecemeal, will inevitably involve some losers. That is what better targeting means. Nevertheless, the Social Security reforms actually leave 88 per cent of all those receiving benefit either better off or nor worse off in cash terms than they were under the old system. But what matters as much as that to people of working age on benefit is that, thanks to our policies, we are forecasting another year of economic growth at the 3 per cent it has averaged since 1981 – which means more jobs will be added to the 1.5 million created since March 1983.

    Critics of the Social Security reforms have been curiously blind to a number of important facts.

    First, our plans provide for 2 billion pounds more to be spent this year than last on social security despite the fall in unemployment from 2.9 million last April to 2.5 million now.

    Second, an extra two hundred million pounds is to be spent on Family Credit. This is expected to benefit over twice the number of low income working families with children as used to benefit from the Family Income Supplement. Overall 2 out of 3 working families with children who receive income-related benefits will be better off than under the old system.

    For example, a married couple with 2 children aged 13 and 16 and one income from work of 110 pounds a week gross, paying average rated and average Local Authority rent, will as a result of the reforms, be 6.20 pounds a week better off than under the old system.

    Nor have our critics recognised the extra resources we are making available to the disabled. Spending on the disabled has already gone up by 80 per cent in real terms since 1979. And the reforms are providing further help for many disabled people.

    For example, those severely disabled living on their own will now get a Severe Disability Premium of 24.75 pounds a week instead of domestic assistance averaging 6.35 pounds a week under the old system.

    We have also set aside up to 5 million pounds this year for the Independent Living Fund. this fund, to be set up in co-operation with the Disablement Income Group, will make payments to severely disabled people who need to employ domestic help in order to continue to live in their own homes.

  • Mr Major’s Written Parliamentary Answer on Overseas Investments – 31 March 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Overseas Investments on 31st March 1988.

    Mr. Cran To ask the Chancellor of the Exchequer what was the amount of earnings from overseas investments in 1987–88; what proportion this constitutes of the national income; and what are the comparable figures for the preceding five years.

    Mr. Major The figures are shown in the table.

    Year | Net earnings on overseas assets in £ million (1) | Per cent. of GDP1982–83 | 2,056 | 0.7
    1983–84 | 2,678 | 0.9
    1984–85 | 4,493 | 1.4
    1985–86 | 2,905 | 0.8
    1986–87 | 5,629 | 1.4
    1987–88 (2) | 4,196 | 1.3

    (1) In respect of United Kingdom investments overseas less overseas investments in the United Kingdom.
    (2) First three quarters only available.

  • Mr Major’s Written Parliamentary Answer on Pensions – 31 March 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Pensions on 31st March 1988.

    Mr. Barry Field To ask the Chancellor of the Exchequer what representations he has received seeking changes to reduce the effective 41.6 per cent. rate of tax for pensioners in receipt of age allowance.

    Mr. Major [holding answer 25 March 1988] There have been a number of representations on this subject.

    The situation to which my hon. Friend refers affects fewer than 2 per cent. of pensioner households, and has nothing whatever to do with the Budget changes. The age allowance has always been withdrawn progressively for taxpayers with incomes above a certain limit. This income limit is at its highest ever level in real terms, and the effective rate within the withdrawal band, at 41.6 per cent., is in fact at its lowest ever level. Those few taxpayers who have incomes within the withdrawal band will gain an extra £2.50 per week from the increase of £800 in the income limit proposed in the Budget, on top of the benefit they receive from the double indexation of the personal allowances and the basic rate cut.

  • Mr Major’s Written Parliamentary Answer on Inheritance Tax – 31 March 1988

    Below is the text of Mr Major’s written Parliamentary Answer on Inheritance Tax on 31st March 1988.

    Mr. Gordon Brown To ask the Chancellor of the Exchequer (1) if he will list all those representations he has received to amend the exemption limit for inheritance tax on donations to political parties; and if he will place the submissions in the Library; (2) what was the basis on which he calculated that there will be no loss in revenue from his decision to amend the exemption limit for inheritance tax on donations to political parties; (3) how many estates in which donations were made to political parties in each year since 1979 have been subject to inheritance tax liability or capital transfer tax; (4) how much (a) inheritance tax or (b) capital transfer tax has been paid in each year since 1979 on donations to political parties.

    Mr. Major Information is not kept of the number of estates paying inheritance tax or capital transfer tax on gifts to political parties or of the amount of tax paid, but it is not thought that under present rules gifts of £100,000 or more are normally made, so the loss in revenue from abolishing the limit is likely to be negligible. No representations have been received to amend the exemption limit.