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Inflation

Volume 301: debated on Thursday 27 November 1997

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30.

To ask the Chancellor of the Exchequer what estimate he has made of the effect of higher than planned inflation on the real value of public expenditure plans in (a) the current and (b) the next financial year. [16614]

Public expenditure planning is carried out on a cash basis. The plans announced in July for the Control Total will be adhered to. Departments need to keep a tight grip on their pay and other costs in order to provide the best possible services to the public.

39.

To ask the Chancellor of the Exchequer if he will make a statement on the operation of his inflation target regime. [16623]

I am satisfied that the new monetary policy arrangements will deliver long-term price stability, and prevent a return to the cycle of boom and bust.