HC Deb 30 July 1981 vol 9 cc1158-9
15. Mr. Dubs

asked the Chancellor of the Exchequer what is the present purchasing power of £ sterling compared with May 1979.

Mr. Brittan

The purchasing power of the £ sterling was 73p in June 1981 compared with 100p in May 1979.

Mr. Dubs

Is not that figure an appalling indictment of the Government's economic policies? Have not they consistently said that the main aim of their economic policy was to reduce the rate of inflation? Given that there is no sign that inflation will fall during the next two years, coupled with an increase in unemployment, is it not time that the Government changed the course of their economic policies?

Mr. Brittan

I do not accept the hon. Gentleman's interpretation of those figures. As he knows perfectly well, the rate of inflation during the past year has been halved. A figure that is not often quoted, but which provides a fair comparison of the Government's record with that of their predecessors, is that, whereas during the past year inflation has been halved, in the year up to May 1979 inflation rose by 37 per cent.