HC Deb 12 November 1992 vol 213 cc986-7
12. Sir Fergus Montgomery

To ask the Chancellor of the Exchequer what is his assessment of the latest trend in retail sales.

Sir John Cope

Retail sales volume has risen by a half of 1 per cent. in each of the past two quarters.

Sir Fergus Montgomery

Does my right hon. Friend agree that the figure gives some encouragement? Is it not a sign that the cuts in interest rates are working through? Does he agree that the prophets of doom and gloom, who thrive on bad news and who rubbish the economy at every turn, do great harm to this country?

Sir John Cope

My hon. Friend is right. It does no good to talk down this country in the way that some people do.

Mr. Bryan Davies

Can retail sales be expected to improve while the purchasing power of people is so low, with more than 3 million people unemployed, and while the incomes of large numbers of other poor people are deliberately kept low by the Government?

Sir John Cope

That is exactly the point. Retail sales have risen and that reflects the fact that people have had some money in their pockets and have been prepared to spend it.

Mr. Nigel Evans

Does my right hon. Friend agree that the interest rate cuts since the 1990s, down from a peak of 15 per cent., have helped to generate retail sales and have meant lower mortgage rates—some of the lowest since the 1960s—and that, although those interest rate cuts have been welcome, another cut, sooner rather than later, would be most welcome?

Sir John Cope

I hear what my hon. Friend say. He is obviously right about the effect on retail sales.