asked the Chancellor of the exchequer, in view of the fact that the cost of living is now at a record high level, what new policies Her Majesty's Government are now pursuing designed to reverse this trend.

The Government's financial policies are designed to combat the danger of cost and price inflation which is always present at a time of vigorous economic expansion. But success will depend also on co-operation by management and unions, especially in the matter of incomes policy.

Is the Chancellor aware that, whatever the policy might be, it has been a shocking failure? Is he not aware that during both stop and go periods throughout the lifetime of this Government the cost of living has gone steadily up and that, since January 1962, food prices have gone up by Is. 8d. in the £, while housing rents have gone up by 2s. 9d. in the £? When might we expect a reissue of the poster, "Mend a Hole in the Purse"?

While not accepting the hon. Gentleman's statistics—which I doubt are entirely accurate—I must say that we have made considerable progress, and are continuing to make progress, towards keeping prices stable, both in absolute terms and relative to other countries in Europe.

Earl of Dalkeith:

Is it not a fact that during the lifetime of this Parliament prices in Britain have risen less fast than prices in Holland, Germany, Italy and other European countries, and less than half as fast as in France and Japan, thereby making our rise in the cost of living the envy of our European rivals, which reflects a great deal to the credit of successive Chancellors in the last few years?

Certainly our prices recently have performed very well compared, for exmaple, with prices in other European countries. What is very important is that while our prices have risen, wages, salaries and social benefits have risen very much more.