HC Deb 19 July 1979 vol 970 cc1975-6
10. Mr. Michael Brown

asked the Chancellor of the Exchequer what is the estimated year-on-year rate of inflation for the period 3 May 1979 to 3 May 1980.

21. Mr. Whitehead

asked the Chancellor of the Exchequer what is his latest estimate of the rate of inflation at the end of December 1979.

Mr. Biffen

I refer my hon. Friend and the hon. Gentleman to my reply to the hon. Member for Glasgow, Maryhill (Mr. Craigen) on 18 June 1979.

Mr. Brown

Does my right hon. Friend agree that the level of inflation that we are experiencing at present and are likely to experience until 3 May next year is virtually the entire responsibility of the profligate pre-election spending spree engaged in by the right hon. Member for Leeds, South-East (Mr. Healey) when he was Chancellor of the Exchequer?

Mr. Biffen

I have no doubt that, given the time lag, the monetary expansion associated with the closing months of the previous Government will bear a major responsibility for price rises over the coming few months.

Mr. Foulkes

Will the right hon. Gentleman consider introducing a special cost of living index for the elderly based on their pattern of spending, which is entirely different from the norm, and increase pensions based on that index?

Mr. Biffen

I understand that separate assessments are made for the purposes of calculating the cost of living, but I shall certainly bear that point in mind.

Mr. Marlow

When my right hon. Friend is considering the elderly, will he consider the possibility of reviewing old age pensions twice as opposed to once a year?

Mr. Biffen

It would be misleading if I encouraged my hon. Friend to be optimistic about that course.

Mr. Winnick

At what stage will the Chancellor of the Exchequer tell his Cabinet colleagues that enough is enough and that the Government's present monetarist policies are leading to totally unacceptable levels of inflation and hardship?

Mr. Biffen

The present monetarist policies have the wholehearted support of the Cabinet and are recognised as the essential precondition for a reduction in the rate of inflation.