Skip to main content

Departmental Achievements

Volume 76: debated on Monday 1 April 1985

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Chancellor of the Exchequer if he will list his Department's principal achievements since 1979.

My right hon. Friend the Chancellor described the Government's economic achievements since 1979 in answer to a similar question in May 1984, at column 437.The Government have maintained the policies, set out in the medium term financial strategy, aimed at reducing inflation and creating the conditions for continued growth in output and employment. Inflation in 1984 was around 5 per cent. for the second successive year, the first time this has happened since the late 1960s. Output grew by a further 2·5 per cent. to reach a record level, despite the impact of the coal strike.The Budget contained proposals to improve the supply performance of the economy and so promote output and employment. These included further real increases in income tax thresholds, a restructuring of the national insurance contributions paid by employers, employees and the self-employed, and a further expansion of the Government's employment and training measures. There was also further progress on tax reform.We have continued to return public sector enterprises to the private sector, with the successful privatisation of Enterprise Oil and British Telecom, creating over 1 million new shareholders, and furthering the Government's policies for the spread of wealth and ownership.The United Kingdom is about to enter the fifth year of continuous growth. After some temporary rise up to the middle of the year, inflation is forecast to fall back to 5 per cent. by the year end. Output is forecast to rise by a further 3·5 per cent., in 1985.