Mr. Michael Tutty:

The fiscal rules and the overall demand in the economy are not affected if expenditure is financed by extra taxation. It is the balance between the expenditure growth and the tax revenue which determines whether the economy is going to be overheating. It is by expanding expenditure at a fast rate without doing anything on the tax side or without cutting other expenditure. It is the overall level of demand that the Government is introducing into the economy that we should be looking at. That should be more modest when the economy is growing fast and when we are reaching full employment.