asked the Chancellor of the Exchequer whether his economic policies are achieving their objective in terms of employment.

:A lasting increase in employment depends on achieving lower inflation through the pursuit of balanced fiscal and monetary policies and on securing improvements in our external competitiveness. Progress has been made on both of these fronts, but more is needed; it is essential to continue the fight against inflation and achieve a further moderation in wage settlements during the new pay round. The Government are also concerned both to alleviate unemployment amongst especially vulnerable groups and to improve labour market efficiency. They have substantially increased spending on special employment schemes.