Cost of Living

HC Deb 26 February 1957 vol 565 cc1027-9

26. Dame Irene Ward

asked the Chancellor of the Exchequer what assessment has been made of the rise in the cost of living resulting from the Rent Bill; and what proposals are under consideration for meeting it from Treasury sources for people whose incomes have been fixed on the basis of rent control.

Mr. P. Thorneycroft

As my right hon. Friend the present Minister of Defence told the House during the Second Reading debate on the Rent Bill, the increases in the cost of living resulting from the Bill may eventually amount to two points. As regards the second part of the Question, no such proposals are under consideration.

Dame Irene Ward

Is my right hon. Friend aware that it has been said in support of the Rent Bill that it is not fair to allow the landlords to subsidise other members of the community and that it was asked yesterday whether those on National Assistance would receive money in respect of the increased rents which they would have to pay when rents are increased under the Bill? Am I to understand that this matter has not yet had the consideration of my right hon. Friend?

Hon. Members

Still up the garden path.

Mr. Thorneycroft

This is an extremely relevant argument, but one which is much more appropriate to discussion on the Rent Bill than on this Question.

31. Mr. Dodds

asked the Chancellor of the Exchequer, in view of the concern arising from the recent rise in the cost-of-living index to its highest level yet, what action the Government propose to take to deal with this situation.

Mr. P. Thorneycroft

I do not think that the recent small increase in the index requires any change in the general anti-inflationary policies of the Government.

Mr. Dodds

But does not the Chancellor appreciate that the cost of living is at its highest point ever, largely due to Government action, with heavy increases in rents and rates to follow? Will he answer the Question: what action does he or do the Government propose to take, or will he tell the people bluntly that they do not intend to control, or try to control, the cost of living?

Mr. Thorneycroft

As a matter of fact, the cost of living has remained remarkably stable since my right hon. Friend announced his policy of maintaining prices at a plateau.

Mr. H. Wilson

Will the right hon. Gentleman do something to remove the feeling in many parts of the country that the Government's only policy for dealing with this problem is by maintaining a very high degree of unemployed capacity in British industry which is the position today, and which may lead, of course, to unemployed resources? Secondly, instead of his preoccupation with the cost-of-living index, would the right hon. Gentleman personally look at some budgets which were presented in London yesterday in the course of certain wage arbitration hearings? Will he look at the actual budgets of how people are living in this country, rather than spend all his time talking about the cost-of-living index?

Mr, Thorneycroft

I did not initiate the talk about the cost-of-living index. It is referred to in the Question. Amongst all the factors that a Chancellor of the Exchequer ought to be paying attention to, one must include the balance of payments position.

27. Dame Irene Ward

asked the Chancellor of the Exchequer what consideration he is now giving to altering the band of tax reliefs introduced in the 1955–56 Budget in such a way as to provide a means of helping those who cannot add to their annual income while at the same time applying the ceiling recommended by the Royal Commission on Taxation.

Mr. P. Thorneycroft

I have noted my hon. Friend's views.

Dame Irene Ward

Is my right hon. Friend aware that he and his predecessors have always expressed the view that it is very difficult to help people on small fixed incomes? Is he not aware that I am giving him a really brilliant suggestion? If so, will he pay some attention to it?

Mr. Thorneycroft

I am always ready to consider by hon. Friend's suggestions.