HC Deb 22 February 1971 vol 812 cc60-1W
Mr. Edward Lyons

asked the Chancellor of the Exchequer what is the approximate percentage fall between 1877 and 1971 in the value of the £ sterling.

Mr. Higgins

Official price indices on which estimates of the change in the purchasing power of the £ can be based are not available before 1914. However, various unofficial estimates for earlier years have been published and, on the basis of these, linked to the Cost of Living Index for the period from 1914 to 1938, the Consumer Price Index from 1938 to 1969 and the General Index of Retail Prices up to December, 1970, the latest available date, it is estimated that the purchasing power of the £ fell by about 85 per cent. between 1877 and the end of 1970. In view of the data that has to be used and the extensive changes in the goods and services available over such a long period, the calculation can only give a very rough guide to the change in values.

TABLE 2.22 or CMND. 4578 AT 1969 SURVEY PRICES
£million
1969–70 provisional outturn 1970–71 estimate 1971–72 estimate 1972–73 estimate 1973–74 estimate 1974–75 estimate
Agriculture, fisheries and forestry 55.1 64.7 61.2 57.0 50 44
Research Councils, etc. … … 2.8 3.0 3.3 3.4 4 4
Trade, industry and employment … 3.1 3.8 4.5 4.1 4 4
Roads … … … … 69.4 73.1 78.2 80.3 83 86
Transport … … … … 2.4 3.8 4.4 4.7 6 6
Housing … … … … 222.7 221.6 203.3 222.4 223 223
Miscellaneous local services … 88.1 94.5 96.4 102.8 105 107
Law and order (excluding social work) … … … … 40.2 42.9 45.7 48.1 49 51
Social work … … … 18.0 19.1 21.6 23.2 24 25
Arts … … … … … 0.8 1.0 1.0 1.1 1 1
Education … … … … 225.2 227.0 235.7 243.5 251 258
Health and welfare … … 186.1 191.7 195.6 201.0 207 215
Financial administration … … 3.1 3.1 3.1 3.2 3 3
Miscellaneous services … … 2.5 2.9 4.1 3.3 3 3
Total … … … 919.5 952.2 958.1 998.1 1,013 1,030