§ Mr. Arthur Lewisasked the Chancellor of the Exchequer, in view of the fact that various incomes and wages controls have reduced real wages by approximately 10 per cent. and that the Government's guidelines will not fully cover these reductions, on the basis of the known and expected inflation rate in 1978, what will be the further fall in the real wage level if the guidelines are observed.
§ Mr. Joel BarnettThe premise in the first part of the Question is incorrect. The first two rounds of the Government's pay policy had different effects on real wages according to income levels: at the lowest levels they resulted in increases in real wages. As regards the current round, I
June 1965 June 1977* Percentage decrease (000s) (000s) South-East and East Anglia … … … 5,088 4,635 8.9 South-West … … … … … 951 904 4.9 West Midlands … … … … … … 1,513 1,322 12.6 East Midlands … … … … … … 955 903 5.4 Yorkshire and Humberside … … … 1,354 1,188 12.3 North-West … … … … … 1,778 1,528 14.1 North … … … … … … 865 765 11.6 Wales … … … … … … 708 610 13.8 * Provisional.