Prices

HC Deb 02 May 1974 vol 872 cc1295-6

1. Mr. Pardoe

asked the Chancellor of the Exchequer what were the percentage increases in wholesale and retail prices, respectively, for the latest 12-months' period for which such figure is available.

The Paymaster-General (Mr. Edmund Dell)

In the 12 months to March 1974 the wholesale price index covering home sales of manufactured products increased by 20 per cent. and the index of retail prices by 13½ per cent.

Mr. Pardoe

Does the Minister agree that those figures indicate and herald a rate of inflation quite unprecedented in our history? Does he believe any steps that the Government have taken in the last few months will do anything to stop the rate of inflation rising to 20 per cent. next year and more the year after? Will he take steps to ensure that a Government financial health warning is attached to all advertisements for Government securities and Government-sponsored savings schemes in the future?

Mr. Dell

The hon. Member has asked a wide variety of questions. I believe that the rate of inflation is unprecedented, except, perhaps, for wartime. The Government have taken many steps to try to reduce the rate of inflation, but it is perfectly clear that it will take some time before the rate of inflation can be reduced to below double figures.

Sir B. Rhys Williams

Does the Minister agree that a sharp rise in the cost of living bears much more heavily on wage earners with families than on single people, and will the Government therefore commit themselves now to increasing family allowances?

Mr. Dell

I cannot commit myself to that now, but the hon. Member will realise that the point he makes is precisely the reason we have concentrated as much help as we can on families.

Mr. Gwilym Roberts

In view of this high level of inflation, is it not surprising that the Opposition parties are so begrudging in their praise for the Government's food subsidies and rent freeze?

Mr. Dell

I am grateful to my hon. Friend for that point. I wait for the parties opposite not to be grudging.

Mr. Robert Carr

Why has the Government's action overall put up the cost of living?

Mr. Dell

The right hon. Gentleman cannot get out of his party's responsibilities in that way. He knows perfectly well that the factor which made the net effect of the Budget positive in price terms was the price increases in nationalised industries. That would have been done by the Conservatives had they remained in Government, and had we not done it, that would in itself have been inflationary.