§ Mr. Newtonasked the Chancellor of the Exchequer what is his estimate of the direct effect on the retail price index of the expenditure changes set out in Command Paper No. 6393.
Mr. Joel Barnett, pursuant to his reply [Official Report, 4th March 1976; Vol.906, c. 722], gave the following information:
The only changes in expenditure which affect the retail prices index directly are those in subsidies. The reduction in subsidies now provided for is estimated to increase the index slightly, by less than half of 1 per cent., in each of the next three years 1976–77 to 1978–79. As a result of other policy changes the expected level of prices in all future years is, of course, substantially lower than it was at this time last year.