UK Economy
During questions to the Chief Secretary to the Treasury, Brooks Newmark questions the Chancellor's judgement in relation to forecasting growth at between 3 and 3½ per cent.
Mr. Brooks Newmark (Braintree) (Con): In last year's autumn statement, the Chancellor said that in the previous Budget
"I forecast growth . . . of between 3 and 3½ per cent . . . Even after the doubling of oil prices".-[Official Report, 2 December 2004; Vol. 428, c. 784.]
We all know that oil prices have doubled and his forecast is halved. Does the Minister agree that the Chancellor's judgment in this matter is flawed, as it is in other matters?
Mr. Browne: The hon. Gentleman's basic facts are wrong. Oil prices were $40 at the beginning of the year and rose to $70. A combination of factors have generated a set of circumstances that have challenged this country's growth, but the resilience of our stable economy has allowed us to continue to grow. Because of that, and because of the stability that is in the economy, we can look forward to increasing growth as forecast in the pre-Budget report.
