§ 34. Mr. H. A. Priceasked the Chancellor of the Exchequer what was the commencing salary of a chief executive officer in 1939; what should this be today to compensate for higher taxation and increased cost of living; how much of the increase is due to each of these two factors; and what is the commencing salary of this grade today.
§ Mr. PowellIn 1939 the commencing salary of a chief executive officer was £900, and his net income, if married with one child, was £794. To compensate for the increased cost of living, the equivalent net income would now be £2,080, for which a gross income of £3,180 would be needed at today's rates of taxation. The commencing salary of this grade is now £1,635, yielding a net income of £1,299.
§ Mr. PriceDoes not this represent a reduction in their standard of living of about 40 per cent. in these cases? Is my hon. Friend aware that this trend is true, if not in the same degree, for most of the professional or middle classes of this country today? Do Her Majesty's Government approve of this trend and, if not, what action is it proposed to take to arrest it?
§ Mr. NabarroJoin the Middle-class Alliance.
§ Mr. PowellThe first deduction at any rate is broadly true, though I think the fall is slightly less than the figure which my hon. Friend mentioned.
§ Mr. S. SilvermanCould the hon. Gentleman estimate how much of the loss indicated in the Question and answer is attributable to the cost of an emergency that occurred between 1939 and 1945?
§ Mr. PowellIf the hon. Gentleman would like me to split up this change before and after 1945, I will willingly do so if he will put down a Question.