HC Deb 23 May 1972 vol 837 cc1214-5
17. Mr. Duffy

asked the Chancellor of the Exchequer if he is satisfied with the rate of consumer expenditure following the Budget proposals; and if he will make a statement.

Mr. Nott

It is too early for the Budget tax cuts to have affected the published indicators, but they will certainly have a favourable effect on consumer spending in the current quarter.

Mr. Duffy

Is the hon. Gentleman aware that the three months moving average of retail sales is still down and that there is no evidence anywhere that retail sales and consumer expenditure are likely to be both substantial enough and sufficiently broadly based to sustain the growth rate which the Chancellor of the Exchequer promised in his Budget statement?

Mr. Nott

While consumer expenditure may not increase exactly in line with the half-yearly forecasts given in the Financial Statement and Budget Report, it is still expected that consumer expenditure will increase at an annual rate of about 5 per cent. over the 18 months between the second half of 1971 and the first half of 1973.

Mr. Edward Taylor

In general, is my hon. Friend satisfied that the purchase tax reductions are being passed on to consumers?

Mr. Nott

Yes, Sir.