Orders of the Day — Taxation

Part of the debate – in the House of Commons at 12:00 am on 21st February 1978.

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Photo of Mr Robert Sheldon Mr Robert Sheldon The Financial Secretary to the Treasury 12:00 am, 21st February 1978

No, I was not arguing on those lines. I was pointing out that we were already in the middle of inflation, rising at the rate of over 10 per cent. Fourth quarter on fourth quarter in 1972–73, we saw an inflation figure of 10·3 per cent. before the effects of the oil crisis were felt. Furthermore, there was a 55 per cent. increase in money supply and, therefore, whatever happened, we were already geared to a massive inflation. We had to face that reaction at the same time as we suffered a fivefold increase in oil prices, which took us into a very hard time indeed.