INFLATION, TAXATION AND TOBACCO PRODUCTS

That this House notes Mr Chancellor of the Exchequer's insistence that interest rates must remain high until inflation is brought down; believes that the Chancellor is right in making it his prime task to reduce inflation; notes that a recent Chancellor, in an earlier fight against inflation, found it helpful to freeze the duty on tobacco products, which also enabled British manufactured cigarettes to compete more effectively in the home market against cheap imported brands; and urges the Chancellor to adopt this tactic in his 1991 Budget so as to help speed the downturn in the retail prices index and provide the opportunity to bring down interest rates, which at their current high level are a burden on business and the great majority of people in the United Kingdom.