HC Deb 09 May 1944 vol 399 c1733W
Mr. W. J. Brown

asked the Chancellor of the Exchequer if he can give an estimate of the probable amount of saving to the Exchequer by way of decreased expenditure on consumer subsidies, etc., of the decision to allow the cost of living to rise by 5 per cent.

Sir J. Anderson

As I explained in my Budget Speech, the cost of living subsidies are rising in amount and the effect of the decision to substitute a range of from 30 to 35 per cent. over pre-war for the former range of 25 to 30 per cent. will be that, so far as the cost of living is allowed to rise, the increase in the subsidies will be less than it would otherwise have been. The average cost of preventing a rise in the index of 1 per cent. of its pre-war level is rather more than £10,000,000 a year.