§ 60 and 61. Mr. Higginsasked the Chancellor of the Exchequer (1) what estimate lie has made of the effect on the retail price index of the increase in selective employment tax announced on 19th March 1968; and over what period he expects this change to take place;
(2) what estimate he has made of the total effect on the retail price index of his Budget proposals of 19th March 1968; and over what period he expects this change to take place.
§ 62 and 63. Mr. Patrick Jenkinasked the Chancellor of the Exchequer (1) what estimate he has made of the change in the retail price index between January 1968 and January 1969 and between March 1968 and March 1969;
(2) what estimate he has made of the rise in the retail price index arising from the increases announced on 19th March 1968 in purchase tax and in the duties on hydrocarbon oils, tobacco, spirits, wine and British wine, respectively; and what he estimates will be the total effect of these changes on the retail price index.
§ 64. Mr. Eyreasked the Chancellor of the Exchequer what estimate he has now made of the total effect on the retail price index of the devaluation of the pound sterling; and over what period he expects this change to take place.
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§ 66. Mr. Chichester-Clarkasked the Chancellor of the Exchequer what estimate he has made of the effect on the retail price index between March 1968 and March 1969 of the gas and Post Office price increases recommended by the National Board for Prices and Incomes, devaluation, and his Budget proposals of 19th March 1968, respectively; and what he estimates will be the total effect on the retail price index of these changes in that period.
§ Mr. Harold LeverIt is not customary to disclose detailed forecasts of prices. However, I see no reason to modify the Government's earlier estimate that devaluation will raise the retail prices index by about 3 per cent. I estimate that the tax measures in my right hon. Friend's Budget will add about 1½ per cent. to the index by the end of this year and a further ¼ per cent. by the end of next year.
§ 65. Mr. Eyreasked the Chancellor of the Exchequer what estimate he has made of the effect on the retail price index of the price increases for gas and Post Office services which have been recommended by the National Board for Prices and Incomes.
§ Mr. Harold LeverNo firm estimate can yet be made because the final details are not yet settled. The best estimate I can make at present is a little over 0.2 per cent.
§ 67. Mr. Chichester-Clarkasked the Chancellor of the Exchequer what estimate he has made of the effect on the retail price index of the changes in direct taxation announced on 11th November, 1964, 6th April, 1965, 3rd May, 1966, and 20th July, 1966, respectively; and what he estimates to have been the total effect on the retail price index of these measures.
§ Mr. Harold LeverI assume that the hon. Gentleman means changes in indirect taxation since changes in direct taxation are not normally considered to have significant and measurable effects on prices in the short-term. The changes in indirect taxation announced in November, 1964, April, 1965, and May and July, 1966, are estimated to have raised the retail prices index by 0.4 per cent., 1.3 per cent. and F3 per cent., respectively, making 3 per cent. in all.