Written question asked by Lord Taylor of Goss Moor (Liberal Democrat) on Wednesday, 19 July 2000, in the House of Commons. It was due for an answer on Tuesday, 25 July 2000. It was answered by Stephen Timms (Labour) on Tuesday, 25 July 2000 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, pursuant to his statement of 18th July, Official Report, 354 c219-44, on the Spending Review, and the document entitled Prudent for a Purpose, Cm 4807, page 32, how he defines productivity for the purpose of his target of raising productivity; if his measure of gross domestic product per capita will incorporate regional price information; and if he will make a statement.

Answer: Mr. Matthew Taylor: To ask the Chancellor of the Exchequer, pursuant to his statement of 18 July 2000, Official Report, columns 219-44, on the Spending Review, and the document entitled "Prudent for a Purpose", Cm 4807, page 32, how he defines productivity for the purpose of his target of raising productivity; if his measure of gross domestic product per capita will incorporate regional price information; and if he will make a statement. [132248] Mr. Timms: There are two measures of productivity for the purposes of the target concerned. One is output per worker, the other is output per hours worked. The source for both of these is the Organisation for Economic Co-operation and Development (OECD). Gross Domestic Product (GDP) per capita for the UK expressed in real terms is estimated using price information which is collected from a wide range of consumer outlets and businesses, chosen to ensure that prices from all parts of the UK are represented.

Secondary information