§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he will publish in the OFFICIAL REPORT a detailed table of figures giving the worth of post-war credits on a basis of the £ sterling having a purchasing value of 20 shillings at the time of the introduction of the scheme and allowing for its depreciation to date; what a person who had £100 deducted at that time would have to receive to maintain the same purchasing, value; and to what extent the 2½ per cent. interest has compensated for the fall in value of these credits.
§ Mr. Patrick JenkinPost-war credits were created in respect of income tax for the five financial years from 1941–42 to 1945–46. By 31st December, 1971, the amount still outstanding for repayment was estimated at £137 million, excluding interest. Taking each £1 of credit as having a purchasing value of 100 new pence at the time it was created, the present purchasing value of the outstanding amount is estimated at £45 million as shown in the following table:
Financial year Nominal value £ million Present purchasing value £ million 1941–42 27 8 1942–43 32 10 1943–44 9 3 1944–45 37 13 1945–46 32 11 In order to maintain the same purchasing value, a person who had accumulated £100 of post-war credits by 1946 would need to receive £275 in November, 1971. The 2½ per cent. interest added since October, 1959, will amount to £38 on each £100 of the repayments to be made from April onwards. The estimate of the fall in purchasing value of the pound is based on changes in the Consumer Price Index between 1946 and 1970 and in the General Index of Retail Prices from 1970 to November, 1971, the latest month for which figures are available, with rough estimates for the years 1941 to 1945.