§ Mr. Arthur Lewisasked the Chancellor of the Exchequer (1) by what percentage each year since October, 1964, Members' salaries have depreciated; and what would be the saving to the Treasury if Members' salaries were reduced by 10 per cent., allowing for the reduced revenue from income tax and surtax, using as the basis the grouped tax returns of Members' salaries for the latest convenient stated year; and to what extent he estimates that this tax cut would assist in checking or stopping inflation;
(2) to what extent he estimates the fall in the purchasing value of £ sterling and rise in the cost of living since October, 1964, to date has been affected in any way by the fact that Members of Parliament have had no salary adjustment; and on what basis he estimates that the present inflationary spiral will be in any way affected by salary adjustments so far as Members of Parliament are concerned.
§ Mr. HigginsMembers' gross Parliamentary salaries have been unchanged in money terms since October, 1964, but successive annual rates of depreciation of purchasing power have been 4.4 per cent., 3.5 per cent., 1.9 per cent., 5.1 per cent., 5.0 per cent, and 6.9 per cent. These figures are based on the annual movements in the Consumer Price Index from 1964 to 1969 adjusted by the movement in the Index of Retail Prices for the months at the beginning and end of the period. It is estimated that if Members' gross salaries were reduced by 10 per cent., the saving to the Exchequer would 287W be £190,550 in a full year, but I regret that I cannot say what the income tax and surtax on this sum would be. As to the effects of adjustments in Members' salaries on the rate of inflation, no precise estimate is possible.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether, without divulging details which would be traceable to those concerned, he will state how many Members of Parliament since June, 1970, have notified the Treasury of their desire to forgo 10 per cent, of their salaries; when such requests were made; and how much savings to date this voluntary request for a salary reduction has meant to the Treasury.
§ Mr. HigginsSince June, 1970, all Members of Parliament have drawn their full Parliamentary salary.