asked the Chancellor of the Exchequer if he will make a statement about the relative merits of (a) tax reductions for low income earners and (b) increased public expenditure in helping to reduce unemployment.

The answer depends on whether employment is likely to grow faster in a high tax or a low tax economy. The Government take the view that, other things being equal, a low tax economy is likely to show greater dynamism, and thus be better for jobs than a high tax economy.