asked the Chancellor of the Exchequer if he is satisfied that his tax changes in the last Budget are a sufficient incentive to increase productivity; and if he will make a statement.

The cuts in direct taxes announced in my Budget Statement were an important first step in restoring incentives at all levels.

asked the Chancellor of the Exchequer what has been the incentive effect of his policies to date; and what new incentives he now proposes.

Measures announced in my Budget Statement last June represented an important first step in restoring incentives at all levels. As to further steps, I cannot anticipate my next Budget.