Prices Commission
Encyclopedia
The Prices Commission was set up in the UK
under the Counter-Inflation Act 1973, alongside the Pay Board, in an attempt to control inflation
. The Conservative
government of Edward Heath
, elected at the 1970 UK general election, had previously abolished the Prices and Incomes Board in November 1970, shortly after taking power, relying on competition
to keep prices down. At the same time, the Industrial Relations Act 1970 was intended to rein in the trades unions.
The Conservatives' economic policy was not successful, and the government took a U-turn. A 90-day freeze of pay and prices (as well as rents and dividends) was introduced on 6 November 1972 under the Counter-Inflation (Temporary Provisions) Act 1972. This was replaced by a Price and Pay Code, which strictly limited increases, supervised by a new Prices Commission and a Pay Board.
The Conservatives were unable to keep power after the inconclusive February 1974 UK general election
, and the Pay Board was abolished in July 1974 by the minority Labour
government led by Harold Wilson
, but the Prices Commission continued. The scope of its powers were amended by the Price Commission Act 1977 and the Price Commission (Amendment) Act 1979.
Controls on prices were abolished soon after the Conservatives under Margaret Thatcher
won the 1979 UK general election, and the Counter-Inflation Act 1973 was repeal
ed by the Competition Act 1980.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
under the Counter-Inflation Act 1973, alongside the Pay Board, in an attempt to control inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
. The Conservative
Conservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...
government of Edward Heath
Edward Heath
Sir Edward Richard George "Ted" Heath, KG, MBE, PC was a British Conservative politician who served as Prime Minister of the United Kingdom and as Leader of the Conservative Party ....
, elected at the 1970 UK general election, had previously abolished the Prices and Incomes Board in November 1970, shortly after taking power, relying on competition
Competition
Competition is a contest between individuals, groups, animals, etc. for territory, a niche, or a location of resources. It arises whenever two and only two strive for a goal which cannot be shared. Competition occurs naturally between living organisms which co-exist in the same environment. For...
to keep prices down. At the same time, the Industrial Relations Act 1970 was intended to rein in the trades unions.
The Conservatives' economic policy was not successful, and the government took a U-turn. A 90-day freeze of pay and prices (as well as rents and dividends) was introduced on 6 November 1972 under the Counter-Inflation (Temporary Provisions) Act 1972. This was replaced by a Price and Pay Code, which strictly limited increases, supervised by a new Prices Commission and a Pay Board.
The Conservatives were unable to keep power after the inconclusive February 1974 UK general election
United Kingdom general election, February 1974
The United Kingdom's general election of February 1974 was held on the 28th of that month. It was the first of two United Kingdom general elections held that year, and the first election since the Second World War not to produce an overall majority in the House of Commons for the winning party,...
, and the Pay Board was abolished in July 1974 by the minority Labour
Labour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...
government led by Harold Wilson
Harold Wilson
James Harold Wilson, Baron Wilson of Rievaulx, KG, OBE, FRS, FSS, PC was a British Labour Member of Parliament, Leader of the Labour Party. He was twice Prime Minister of the United Kingdom during the 1960s and 1970s, winning four general elections, including a minority government after the...
, but the Prices Commission continued. The scope of its powers were amended by the Price Commission Act 1977 and the Price Commission (Amendment) Act 1979.
Controls on prices were abolished soon after the Conservatives under Margaret Thatcher
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...
won the 1979 UK general election, and the Counter-Inflation Act 1973 was repeal
Repeal
A repeal is the amendment, removal or reversal of a law. This is generally done when a law is no longer effective, or it is shown that a law is having far more negative consequences than were originally envisioned....
ed by the Competition Act 1980.
External links
- Government measures in the United Kingdom from 1945 to 1980, Appendix D to Innovation and Industrial Strength In the UK, West Germany, United States and Japan from the Policy Studies InstitutePolicy Studies InstituteThe Policy Studies Institute is a British think-tank. It was formed in 1978 through the merger of the former Centre for the Study of Social Policy and Political and Economic Planning. Since 1998 it has been an independent subsidiary of the University of Westminster...
, 1989 (PDF), ISBN 0-85374-458-0