asked the Chancellor of the Exchequer if he will take steps to make selective cuts in purchase tax to favour goods produced in development areas.

I have noted the hon. Member's suggestion.

I hope that the right hon. Gentleman does more than that, otherwise we might be convinced that the Government's lack of sensitivity towards regional problems is matched only by their lack of ingenuity. Will the right hon. Gentleman bear in mind that there is a desperate need for extra substantial inducement for the regions and that this suggestion could have a worthwhile effect on prices generally?

I am sure that my right hon. Friend will bear in mind what the hon. Gentleman said; but, as this is a Budget matter, the hon. Gentleman will not expect me to be more precise at this stage.