§ Mr. Ovendenasked the Secretary of State for Prices and Consumer Protection what will be the rates of food subsidies when the reduction of the bread subsidy which he announced on 13th December comes into effect.
§ Mr. HattersleyAs my right hon. Friend the Chancellor of the Exchequer has announced today, we are accelerating the phasing out of the food subsidy programme. We have accordingly decided to abolish the butter subsidy with effect from Tuesday 28th December 1976 and, from the same date, to reduce the subsidy on cheese from the present rate of £109 per ton to £45 per ton. In retail price terms, these cuts are equivalent to about 4p per pound on both butter and cheese. I would not expect the full effect to be widely felt in shops for some time in the new year.
705WThe rates of subsidy following these reductions and the cut in the bread subsidy which I have already announced will be as follows:
(estimated retail equivalent) Milk … … … 1p per pint Cheese … … … 3p per lb Bread … … … 1p per large loaf Flour … … … 1p per lb (The tea and butter subsidies will both have ended by January 1977.)
I do not intend to make further reductions in the subsidies in the next few months but, as my right hon. Friend has announced, the programme will effectively be wound up during 1977–78.