HC Deb 07 December 1954 vol 535 cc754-5
15. Mr. Roy Jenkins

asked the Chancellor of the Exchequer what representations he has received from the Bank of England or from other banks about the current development of inflationary tendencies in the economy.

Mr. Maudling

My right hon. Friend is fully alive to the need to keep inflation in check, and that is one of the matters covered by the regular consultation that takes place between him and the Governor of the Bank of England.

Mr. Jenkins

But the hon. Gentleman is no doubt aware that there has been a good deal of speculation about whether an inflationary situation now exists. Could he say whether, for instance, the view of the Government marches in step with that of the distinguished economist, Mr. Roy Harrod, who is associated with the Conservative Party, that we should cut down on investment to deal with inflation?

Mr. Maudling

I thought the Question was referring particularly to any information received from the Bank of England, which is, of course, of a confidential character. As far as the Government's general attitude to the danger of inflation is concerned, I think that question could be more conveniently dealt with in the course of the debate this afternoon.

Mr. S. Silverman

Will the hon. Gentleman explain to the inexpert mind how he reconciles his statement just now that the Government wish to control inflation with the statement he made a moment or two ago that they welcomed the rise in profits?

Mr. Maudling

The whole point of avoiding inflation is to ensure that the rise in personal incomes keeps pace with the rise in productivity.

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