HC Deb 17 January 1980 vol 976 cc858-9W
Mr. Knox

asked the Chancellor of the Exchequer what has been the increase in the money supply (M1) in each year since 1945.

Mr. Lawson

Statistics of money supply M1 have been officially compiled only from 1963. Figures for the amounts outstanding at end of quarter from the first quarter of 1963 to the first quarter of 1975 are given inBank of England Statistical Abstract number 2 1975 table 12/1, with quarterly changes in table 12/2. Figures for later quarters are given in Financial Statistics tables 7.1 and 7.2, the latest issue of which is for December 1979.

Figures for M1 outstanding at end of year from 1951 are published by the IMF in International Financial Statistics Yearbook1979—page 423, line 34, money. Up to 1962 these are estimates based on partial information; from 1963 they agree with the official United Kingdom figures. Percentage changes from year to year are also given in this IMF publication—table 34X, page 54, line 112, United Kingdom. From1957–1958 they are based on the average amount outstanding during the year; for earlier years they are based on the amount outstanding at end of year.

Mr. David Price

asked the Chancellor of the Exchequer within what degrees of accuracy the Treasury calculates the two measures of money supply, namely sterling M1 and sterling M3.

Mr. Lawson

Statistics on money supply growth are collected and published by the Bank of England. The reliability of the various estimates for money stock outstanding is reasonably good. Monthly estimates—seasonally unadjusted—of Ml, sterling M3 and M3 are made on the basis of balance sheet returns by institutions in the United Kingdom banking sector, which comprises all listed banks, discount market institutions and the banking department of the Bank of England. Figures for the amount of notes and coin in circulation are available from the issue department of the Bank of England and the Royal Mint respectively. Returns are made by all the institutions involved but a number of adjustments, some of them rather arbitrary, have to be made, for example to take account of items in transit. The monthly changes are measured by the difference between the levels at the start and the end of the month

£ £
July 1978 November 1979
Car tax VAT Car tax VAT
(a) British Leyland Mini … 148.92 154.87 176.67 344.50
(b) Ford Fiesta … 160.98 167.41 189.93 370.37
(c) Ford Escort Popular … 157.08 163.36 192.39 375.16
(d) Ford Escort Popular (disabled) … 158.40 164.74 182.06 355.01