HC Deb 17 December 1981 vol 15 cc190-1W
7. Mr. Meacher

asked the Chancellor of the Exchequer what estimate he makes of the effect of his statement on 2 December on the retail price index, the tax and price index and on living standards generally.

18. Mr. Ioan Evans

asked the Chancellor of the Exchequer what is the current level of the tax and price index; and how this will be affected by the increases in rents, rate contributions and charges announced on 2 December.

Mr. Brittan

As my right hon. and learned Friend the Chancellor of the Exchequer told my right hon. Friend the Member for Chesham and Amersham (Sir I. Gilmour) on 7 December, the measures he announced on 2 December will directly increase the retail price index and tax and price index by 0.6 per cent. and 1½ to 2 per cent. respectively from next April. However, the measures have to be seen in the context of the Government's overall monetary and fiscal policies, which represent the only way of achieving lasting reductions in inflation and improvements in living standards. The tax and price index for October, based on a level of 100 in January 1978, stood at 158.2.

23. Mr. William Hamilton

asked the Chancellor of the Exchequer if he will now make a statement on the effect of his recent proposals on the tax and price index.

Mr. Brittan

As my right hon. Friend the Member for Chesham and Amersham (Sir I. Gilmour) was told on 7 December, the measures announced on 2 December will directly increase the tax and price index by 1½ to 2 per cent. from next April. However, the measures have to be seen in the context of the Government's overall monetary and fiscal policies, which represent the only way of achieving lasting reductions in inflation and improvements in living standards.

37. Mr. Skinner

asked the Chancellor of the Exchequer if he is satisfied with the rate of inflation as measured by the Government's tax and price index; and if he will make a statement.

Mr. Brittan

Further progress in the fight against inflation is needed and expected, but I do not accept that changes in the TPI necessarily provide the best way of measuring such progress.