§ 51. Mr. Bevinsasked the Chancellor of the Exchequer if he will state, for the years 1949–50 and 1950–51, the total amount paid in food subsidies; the total amounts which would have been so payable to keep the prices of subsidised foods stable; and the increase in the index of retail food prices during the ensuing 12 months in both cases.
§ Mr. R. A. ButlerThe total amounts paid in subsidies for 1949–50 and 1950–51 were £424.8 million and £400.3 million respectively. To keep the prices of subsidised foods stable in 1949–50—at the levels prevailing at the beginning of the year would have cost a further £145 million, that is some £570 million in all. The comparable figures for 1950–51 would have been £59 million and £459 million respectively.
The increases in the Interim Index of Retail Prices (Food Index) were about 14 and 9 points respectively in each year.
59. Mr. Leeasked the Chancellor of the Exchequer whether he will give an estimate of the figure to which the food subsidies would have to rise in order to maintain the cost-of-living figure obtaining in April, 1951.
§ Mr. R. A. ButlerIt would be misleading to attempt to estimate such a figure because the Interim Index of Retail Prices takes account of many items in addition to subsidised food.