Oral question asked in the House of Commons, by Bob Blizzard (Labour). It was answered on Thursday, 14 June 2007 on behalf of the Treasury.

Inflation Rate

Question: What I remember about the first quarter of 1997 is that there was no Monetary Policy Committee and the Chancellor at that time artificially held down interest rates in a desperate and fruitless attempt to win the 1997 election. Did that not distort the economy, and does it not make the comparison asked for in the question meaningless? Is not the only real comparison the fact that the Conservatives failed and we have had 10 years of success?

Answer: That is precisely the principal comparison. Under this Government we have had low and stable interest rates, low and stable inflation and historically high levels of employment, and that has led to greater wealth in this country.

Secondary information