Remarks visiting Birmingham Ladywood (by-election)

Document type:	Speeches, interviews, etc.
Venue:	Ladywood, Birmingham
Source:	The Times, 13 August 1977
Journalist:	Arthur Osman, The Times, reporting
Editorial comments:	Afternoon. The The Sun reported MT saying: "We seem to be on the way back to normal free collective bargaining. It appears the Government are almost following the advice set out in our policy statement The Right Approach". MT was pushed and jostled on her walkabout by Socialist Workers Party demonstrators; police had to clear a path for her (Yorkshire Post, Scotsman, 13 August 1977).
Importance ranking:	Major
Word count:	608
Themes:	By-elections, Monetary policy, Pay

Inflation down to 17.6%; and fall will go on next year if pay rises are curbed, minister says

Mr. Hattersley, Secretary of State for Prices and Consumer Protection, maintained yesterday that inflation would continue to fall for the rest of this year. He announced a fall to an annual equivalent of 17.6 per cent.

Speaking in support of Mr John Sever, the Labour candidate in the Birmingham, Ladywood, by-election, he said it might also continue next year provided 12-month intervals were kept between wage settlements and given a 10 per cent ceiling on national earnings.

“The message is gradually getting across that moderate wage increases are the way to improve our standard of living” , he said.

“This is the beginning of the improvement which has long been awaited and needed. We are on course for the 12 or so per cent we hoped for by the end of the year. This is now certain. It is a remarkable economic achievement but it is only the beginning.”

July's retail price index marked the beginning of a steady improvement that had begun earlier than expected. “In July prices rose overall by only 0.1 per cent. That is the lowest monthly increase since August, 1974, itself an exceptional month. Only three times since 1970 has a monthly figure as low been recorded.”

The figures took no account of the fall in prices of petrol and tea. The six-monthly comparison had fallen to an annual equivalent of 15.9 per cent, compared with 19.6 per cent in May and 20 per cent in April.

“The retrospective annual rate of inflation, August, 1976, to July, 1977, fell from 17.7 per cent to 17.6 per cent.”

Mr. Hattersley added: “There is no doubt that next month will show a much larger reduction.”

The rate of inflation would continue to fall throughout this year. “As long as the total national wage bill does not increase beyond the limit set by the Chancellor, the improvement will go on into the next year and the target of a single-figure inflation rate will be achieved.

“In fact, we can now predict with confidence that for the next six months inflation will be brought increasingly under control. Whether or not that process continues into 1978 is wholly dependent on the pattern of wage settlements during the next year.”

What happened after Christmas was in the hands of the whole nation. The prospects were clear and the turnround had arrived.

Mrs Thatcher, Leader of the Opposition, also in Ladywood yesterday, said she was not impressed by a fall in prices. “You always get a good month during the summer because fresh vegetables are down.” On inflation she said: “Even if it was down to 10 per cent it would still be an appallingly high figure.”

She said a return to free collective bargaining would inevitably lead to some getting more than others.

“Workers have had their differentials compressed for two years and it is unrealistic to think they will go on with that.”

The 10 candidates are: John Sever (Lab), Quentin Davies (C), Kenneth Hardeman (L), Anthony Reed-Herbert (Nat Front), George Matthews (Ind C), James Hunte (Ind), Kim Gordon (Socialist Workers), Peter Courtney (Reform Party), Raghib Ahsan (Socialist Unity), William George Boaks (Air Road, Public Safety, White Resident). General election: A. B. Walden (Lab), 14,818; R. Lawn (C), 5,079; K. G. Hardeman (L), 3,086. Lab majority 9,739.