§ Lord Tebbit
asked Her Majesty's Government:
What is their estimate of the impact upon the level of unemployment of the increased state spending recently announced by the Chancellor of the Exchequer. [HL3667]
§ Lord McIntosh of Haringey
The Government's macroeconomic framework is designed to deliver high and stable levels of growth and employment; this platform of economic stability has already delivered an increase in employment of over one million since the election. The new spending plans are set within prudent limits and meet the clear fiscal rules to ensure macroeconomic stability. The Government have adhered to the fiscal spending envelope for the next three years set out in Budget 2000. Within this, current spending is planned to rise by 2.5 per cent a year in real terms, in line with the neutral assessment of trend growth in the economy, and net investment will more than double to 1.8 per cent of GDP by 2003–04.