HC Deb 12 November 1953 vol 520 cc1140-1
46. Mr. Osborne

asked the Chancellor of the Exchequer the value of the £ sterling in October, 1951, 1952, and 1953, respectively, as compared with 20s. in 1945.

The Economic Secretary to the Treasury (Mr. R. Maudling)

Taking the internal purchasing power of the £ as 20s. in 1945, the corresponding figure for October, 1951, is estimated to have been 14s. 3d., for October, 1952, 13s. 8d., and for September, 1953, the latest available date, 13s. 5d. These estimates are based on the price index for all consumer goods and services, calculated annually for national income purposes, from 1945 to 1952, and the Interim Index of Retail Prices since then.

Mr. Osborne

Do I understand from those figures that, during the two years of Conservative Government, the value of the £, internally, has fallen by only 10d., whereas, during six years of Socialist government, the internal purchasing power of the £ fell by 5s. 3d.? Perhaps I could correct that figure and say 5s. 9d. Will my hon. Friend see that these figures are made known to the electorate?

Mr. Maudling

My hon. Friend's amended mathematics are quite accurate. It is also a fact that the Ministry of Labour index has now been practically stationary for well over a year, compared with a rise of 15 points in the comparable period before October, 1951.

Dr. King

Is it suggested that these figures represent the implementation of the promise which the Tory Party made during the Election, when they flooded the country with posters bearing the picture of a torn £1 note and the slogan "Mend the hole in the £"?

Mr. Maudling

I think the contrast between the figures for the last two years and the figures for the preceding years vindicates my right hon. Friend's policy.