§ Mr. Biffenasked the Prime Minister what is the estimated period ahead for which money income increases have already been pre-empted on account of the relative growth of incomes and production since 16th December, 1964.
§ Mr. George BrownI have been asked to reply.
Between the final quarter of 1964 and the first quarter of 1966 the real gross domestic product increased by about 3 per cent. while domestic factor incomes rose by about 7 per cent. The period for which past increases in incomes might be said to have pre-empted future increases depends on what assumption is made about the future rate of growth in output. As the Prime Minister made clear in his statement to the House on 20th July, in recent years money incomes have been increasing at a rate far faster than could be justified by increasing production.