§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer how he measures an increase in the standard of living; and how many years it would take to double the standard of living at the rate of increase since (i) 1979 and (ii) October 1989.
§ Mr. NelsonThe standard of living can be measured in a number of ways. Taking real personal disposable income per head, a per capita growth rate of 2.8 per cent. per annum would be required to achieve a doubling of living standards over the next 25 years. This compares with average annual per capita growth rates of 2.1 per cent. since 1979 and 0.8 per cent. since October 1989. However, as these are both dates from the peak of an economic cycle, such selective periods cannot be reliable indicators of future growth.