HC Deb 09 March 1971 vol 813 cc229-30
14. Dr. Gilbert

asked the Chancellor of the Exchequer what estimate he has made of the change in the cost of living index between 18th June, 1970 and 18th June, 1971.

Mr. Patrick Jenkin

It is not usual to provide forecasts of price movements.

Dr. Gilbert

No doubt, but would not the Financial Secretary agree that the balance of evidence is that the increase will be much higher next year, and could he for once tell us when the Government will start accepting responsibility for the results of their own disastrous policies, and will he try not again to hide behind the excuse of wage demands from the trade unions when, in fact, the reason for these demands is the total absence of confidence among ordinary working people in his own Government's policies?

Mr. Jenkin

I have already said that I shall not forecast price movements this year. I shall certainly not attempt to hazard a guess for next year.

Mr. Evelyn King

Could my hon. Friend seek to isolate those forms of taxation which bear directly on the cost of food—mostly imposed by the previous Government—and seek first to deal with them?

Mr. Jenkin

My hon. Friend will not expect me to anticipate my right lion. Friend's Budget.

Mr. Stallard

Is the Minister aware that, since the election, there have been 5,645 separate price increases, an average of about 200 a week? Is it not about time the Government began to take concrete and positive steps to curb this so-called inflationary spiral?

Mr. Jenkin

My right hon. Friend has made it abundantly clear that overwhelmingly the cause of the price inflation from which we are suffering at present is the rising wage-cost inflation which we inherited. The measures which the Government are taking in that respect are beginning to bear fruit.

Mr. Taverne

But surely the hon. Gentleman will not deny that the Government's policies have considerably contributed to the acceleration of inflation? How can he deny, for example, that the increased charge for school meals, which we debated last night, added to the cost of living, or that the withdrawal of grants to British Rail have led to enormous increases in fares?

Mr. Jenkin

We have always made it perfectly clear that the Government would put an end to indiscriminate subsidies handed out irrespective of need.