Inflation (Hansard, 8 March 1983)

§ Q5. Mr. Kenneth Carlisle
asked the Prime Minister whether she will make a statement on the current rate of inflation.

§ The Prime Minister
Inflation at 4.9 per cent. is now at its lowest level since early 1970.

§ Mr. Carlisle
Does my right hon. Friend agree that it is good news for this country that the rate of inflation is at its lowest for 13 years and is at half the rate it was when the Government took office? Is it not also good news for the pensioners and those on fixed incomes, because the value of their savings will be protected? Will it not boost jobs, because interest rates will follow inflation and give confidence to business to plan for the future?

§ The Prime Minister
Yes, Sir, it is very good news that inflation is down as low as it is. We still have to get it down further so that we can compete with some of our most efficient competitors. I agree with my hon. Friend that that will have a good effect on interest rates and therefore on confidence for the future. I also especially agree with my hon. Friend that savings will keep their value. Had we not had the level of inflation that we have had over the past 20 years, many pensioners would have savings that would be worth more in real terms today than they are. The money that they saved many years ago would still be able to buy goods to the same value as when the money was earned.

§ Mr. John Morris
Has the Prime Minister given further thought to the dual control of cruise missiles—

§ Mr. Speaker
Order. This is not an open question. It is about the current rate of inflation.

§ Mr. Woodall
Has the Prime Minister received a letter from Mr. James Nicolson of Tadcaster, as most right hon. and hon. Members have, about his mother's intention to put up for auction her late husband's Victoria Cross in order to—

§ Mr. Speaker
Order. We give a good run on open questions, but this one must be on inflation.

§ Mr. Woodall
On pensions, Sir.

§ Mr. Speaker
No, it is on inflation.

§ Mr. Woodall
On a point of order, Mr. Speaker. It is the same intention. This arises because of inflation.

§ Mr. Speaker
Order. The hon. Gentleman is quite right now.

§ Mr. Woodall
Mr. Nicolson's mother wants to draw the Prime Minister's attention to the circumstances of pre-1974 war widows. Will the Prime Minister please give an unequivocal assurance that the anomalies that apply to pre - 1974 war widows because of inflation will be removed as soon as possible?

§ The Prime Minister
The Government have reduced inflation to a lower level than that to which the Labour Government reduced it. Moreover, the Government have been especially meticulous to increase war widows' pensions way beyond others and to give extra age allowances for war widows' pensions. Further, war widows' pensions have been completely relieved of tax. I am grateful to the hon. Gentleman for allowing me to draw the House's attention to the Government's excellent record on war widows' pensions.