Bank Lending

Mr.Austin Mitchell
asked the Chancellor of the Exchequer what is the latest figure for the proportion of bank advances taken by manufacturing industry less food, drink and tobacco compared with 1970; and what are the implications concerning inflation in the real economy.

Mr. Lawson
The latest information—relating to mid-November 1979—was given in my answer to the hon. Member of 14 January [Vol. 976, c. 635–8.] The analysis of bank lending by industry is available quarterly; information relating to mid-February will be announced by Bank of England press notice on 31 March.Bank borrowing by companies will reflect a number of influences, including the current rate of inflation. Future inflation will depend in turn on the rate of monetary growth, of which bank lending is one aspect.