§ Mr. Arthur Lewisasked the Chancellor of the Exchequer why the £ sterling, which had a purchasing value of 20s. in 1914 and had a value of 3s. 11d. in 1965, fell in value to 3s. 7d. in June, 1967; and to what extent Her Majesty's Government's policy of wage and salary restraint, increased taxation, and other measures taken during the last 12 months was responsible for this further depreciation in the purchasing power of the £ sterling.
§ Mr. MacDermotThe main reasons for the fall in the purchasing power of the £ between 1965 and June, 1967 were that the growth of money incomes over the period as a whole outstripped that of output, and that indirect taxes had to be increased to help restore the balance of payments.