§ Mr. Knoxasked the Chancellor of the Exchequer by how much the purchasing 293W value of the £ sterling has fallen since 1958; and, from information available from international sources, how this reduction compares with the similar figures for each of the countries of the European Economic Community.
§ Mr. Higgins:Taking the purchasing power of the £ sterling to be 100 pence in 1958, its value in February, 1972, is estimated to have been 60.3 pence, a fall of 39.7 per cent. This estimate is based on the change in the consumer price index between 1958 and 1971 calendar years adjusted by movements in the General Index of Retail Prices for the months at the end of the period.
For comparison with member countries of the European Economic Community, the only published indices refer to retail prices. Figures based on these price indices for which February, 1972, is the latest month available, and using the General Index of Retail Prices for the whole period in the case of the United Kingdom, are shown in the following table:
Percentage jail in the purchasing power of money 1958 average to February 1972 United Kingdom European Economic Community 42.0 Belgium 32.1 France 44.0 Germany 31.5 Italy 38.1 Luxembourg 28.6 Netherlands 43.5 Source: OECD Main Economic Indicators.
§ Mr. Knoxasked the Chancellor of the Exchequer what is the maximum rate of direct taxation in the United Kingdom; and, from information available from international sources, how this compares with the equivalent position in the European Economic Community countries.
§ Mr. Higgins:The information is given in the table below. The rate quoted for each community country is the rate in force on 1st January, 1972; the rate for the United Kingdom is that applicable for 1972–73 on the assumption that the 1972–73 surtax rates are the same as for 1971–72.
Per cent. Belgium 58 France 64.3 Germany 54.6 Italy 92.2 Luxembourg 57 Netherlands 74 United Kingdom 88.75