HC Deb 24 March 1970 vol 798 cc358-60W
107. Mr. Nott

asked the Chancellor of the Exchequer what was the decline in the value of the £ sterling between October, 1964 and the latest date for which figures are available; and what was the average annual rate of inflation which produced this decline.

Mr. William Rodgers

Taking the internal purchasing power of the £ sterling as 20s. in October, 1964, its value in February, 1970, the latest date for which information is available, is estimated at 15s. 11d. In this period consumer prices rose at the average annual rate of 4.3 per cent.

110. Mr. Patrick Jenkin

asked the Chancellor of the Exchequer what has been the annual average percentage decline in the value of the £ sterling between October, 1964 and the latest date for which figures are available, between October, 1964 and October, 1969, between October, 1969 and the latest date for which figures are available, between October, 1959 and October, 1964, and between October, 1951 and October, 1964 respectively.

Mr. William Rodgers

The following is the information:

Average annual percentage decline in the value of the £ sterling
October, 1964 to February, 1970 … 4.2
October, 1964 to October, 1969 … 4.0
October, 1959 to October, 1964 … 2.7
October, 1951 to October, 1964 … 2.5

Between October 1969 and February, 1970, the value of the £ sterling is estimated to have declined by 2.2 per cent. Because of seasonal influences on prices over such a short period it would be misleading to express this as an annual rate.

112. Mr. Ridley

asked the Chancellor of the Exchequer if he will state the decline in the value of the £ sterling between November, 1967 and the latest date for which figures are available; and if he will state the average annual rate of inflation which has caused that decline.

Mr. William Rodgers

Taking the internal purchasing power of the £ sterling as 20s. in November, 1967, its value in February, 1970, the latest date for which information is available, is estimated at 17s. 9d. In this period consumer prices rose at an average annual rate of 5.4 per cent.

116. Mr. Hall-Davis

asked the Chancellor of the Exchequer what proportions of the fall in the value of the £ sterling to date since October, 1964 and Novem- ber, 1967, respectively, have been attributable to the effects of devaluation, of increases in taxation, of increased charges of nationalised industries, and to other causes, respectively.

Mr. William Rodgers

We estimate that, of the increase in the retail prices index since October, 1964 of 26 per cent., rather less than 3 per cent. is attributable to devaluation, more than 7 per cent. to increased indirect taxation and about 3 per cent. to increased charges by nationalised industries. For the increase in the index since November, 1967 of 13 per cent., the corresponding figures are rather less than 3 per cent., about 4 per cent. and about 1 per cent.

118. Mr. Alison

asked the Chancellor of the Exchequer what has been the effect of devaluation upon the internal purchasing power of the £ sterling in the period since that event.

Mr. William Rodgers

We estimate that the effect has been to reduce the internal purchasing power of the £ by rather less than 3 per cent.