§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether, in the light of the new information as published on 27th January, 1971, showing that the official cost of living figures rose by 8 per cent. during 1970, and that the annual rate is now running at 10 per cent., he will give a full and detailed explanation and reasons why he will not change his policy and take some action to control price increases as well as wage increases.
§ Mr. HigginsThe Government believe that the way to slow down the rise in prices is through a progressive de-escalation in the scale of wage and salary settlements, within the framework of a firm control of demand. The reasons for this policy have been set out in a number of statements, including in particular my 107W right hon. Friend's speech to the Overseas Bankers Club on 1st February and the Memorandum submitted by Her Majesty's Treasury to the Court of Inquiry into Pay in the Electricity Industry. (Cmnd. 4579).