HC Deb 16 November 1954 vol 533 cc197-8
12. Mr. E. Johnson

asked the Chancellor of the Exchequer the drop in the internal value of the £ sterling between June, 1947, and October, 1951.

Mr. R. A. Butler

Taking the internal purchasing power of the £ as 20s. in June, 1947, the corresponding figure for October, 1951, is estimated to be about 15s. 6d. This estimate is based on the price index for all consumer goods and services calculated annually for national income purposes and the Interim Index of Retail Prices.

Mr. Johnson

When that figure is considered in conjunction with the fact that there was no increase in the amount received by old-age pensioners during the same period, are not the indifference of the late Government to the plight of the old people and the "Tartuffish" character of the Motion about old-age pensions on the Order Paper fully exposed?

Mr. Butler

This seems to be valuable ammunition for the debate which is about to take place.

Mr. H. Wilson

Would the right hon. Gentleman also inform the House by what percentage world prices increased during that period and by what percentage import prices increased? Is the Chancellor aware that the characteristic achievement of this Government is to put up internal prices while world prices have been falling?

Mr. Butler

I have not the figures available to reply to the first part of the right hon. Gentleman's question, although I can easily obtain them if he so desires. I think the achievement of this Government in holding the cost-of-living index stable for the better part of a year is a great deal more impressive than the disastrous and catastrophic slide under the Labour Government.

Mr. Jay

As I am sure the Chancellor is anxious to enlighten rather than mislead the House, will he remind his hon. Friends that old-age pensions were raised by 4s. during the last Government?

Mr. Butler

I seem to remember that they were raised at a very opportune moment.

Mr. Speaker

I think we are anticipating the debate which is to follow.

16. Mr. Osborne

asked the Chancellor of the Exchequer the percentage fall in the internal purchasing power of the £ sterling for the three years 1945 to 1948, 1948 to 1951, and from 1951 to 1954, respectively.

Mr. R. A. Butler

The internal purchasing power of the £ sterling is estimated to have fallen by 15 per cent. between 1945 and 1948, by 13 per cent. between 1948 and 1951. and by 9 per cent. between 1951 and September, 1954. These figures are based on the price index for all consumer goods and services between 1945 and 1953 and the Interim Index of Retail Prices thereafter.