HC Deb 18 July 1967 vol 750 cc201-2W
23. Mr. Arthur Lewis

asked the Chancellor of the Exchequer why the £ sterling depreciated by over 9d. during the past 12 months ending Tuesday, 18th July.

Mr. MacDermot

Over the twelve months to 16th May last—the latest date available—the retail prices index rose by some 2¼ per cent. or 5d. in the £. A substantial part of this rise reflected increases in indirect taxes made necessary by the need to correct the balance of payments. Excluding these increases, the rise in retail prices was very moderate, and demonstrates the effectiveness of the prices and incomes policy.

43. Mr. Galbraith

asked the Chancellor of the Exchequer what was the value of the 1948 £1 in 1949, 1951, 1964, 1965, 1966, and at present.

Mr. MacDermot

Taking the value of the pound as 20s. in 1948, its purchasing power in later years is estimated at 19s. 6d. in 1949, 19s. 0d. in 1950, 17s. 5d. in 1951, 12s. 4d. in 1964, 11s. 9d. in 1965, 11s. 4d. in 1966, and 11s. 1d. in May, 1967, the latest date for which information is available.

The estimates are based on changes in the consumer price index for calendar years, brought up to date by reference to the movement in the index of retail prices during the first five months of 1967.