Oral question asked in the House of Commons, by Sharon Hodgson (Labour). It was answered on Thursday, 11 May 2006 on behalf of the Treasury.

Inflation Target

Question: I thank the Chancellor for his reply. As he is well aware, unemployment in my constituency has fallen by more than 50 per cent. since 1997. What assessment has he made of the UK’s combination of unemployment and inflation since 1997?

Answer: I am grateful to my hon. Friend. Not only in her constituency, but in those of all Opposition Members, unemployment has fallen substantially since 1997. That includes long-term unemployment and it is important to note that long-term youth unemployment, about which many people were so concerned, has been virtually eliminated. By having a stable macro-economic framework, we have managed to combine low inflation with high employment. We intend to continue with that, but it is possible only if we adopt active labour market measures such as the new deal for skills and jobs. It is a tragedy that both Opposition parties want to abolish it.

Secondary information