asked the Chancellor of the Exchequer if he is satisfied with the United Kingdom's economic situation.
No. We face some very serious economic problems—especially inflation and the external payments deficit—which have been compounded by the enormous disturbances in the world economy. Some progress has been made on the external problems. Agreements have been reached on the recycling of petrodollars, and the prospects for world trade and for commodity prices now look somewhat less bleak. At home our first priorities must be to tackle the domestic causes of inflation, and to prevent consumption from eating into resources required for the balance of payments and industrial investment. The Government's economic policies will be directed to these objectives.