HC Deb 23 May 1957 vol 570 cc1371-2
13. Mr. Stevens

asked the Chancellor of the Exchequer how the increase in expenditure on the social services by the central government, the National Insurance Fund, and the local authorities between 1951–52 and 1956–57 compares with the rise in retail prices during the same period.

The Financial Secretary to the Treasury (Mr. J. Enoch Powell)

Between 1951–52 and 1956–57 expenditure on the social services increased by 38 per cent., and retail prices by about 23 per cent.

Mr. Stevens

Arising out of that Answer, may I ask my hon. Friend whether he agrees that, despite economic difficulties in the last few years, there has been a very substantial advance in the provision of real social services for the people?

Mr. Powell

Yes, Sir.

Mr. Blenkinsop

Does not the hon. Gentleman also recognise that a very large part of any increased expenditure is in fact due to rises in prices, and that the real increases in the value of the services are extremely limited?

Mr. Powell

That does not detract from the fact that there has been a substantial increase in real terms over the period—about 12½ per cent.

Mr. H. Wilson

The Government, who pledged themselves to reduce Government expenditure, record that there has been an increase in Government expenditure of £1,600 million since 1950–51. Is not the hon. Gentleman's answer an admission that by far the greatest single element in that increase of £1,600 million is the price rise and inflation?

Mr. Powell

But in that period there has been a substantial fall in the real burden of Government expenditure.