The Budget was meant, according.to-Mr, Callaghan, to do three things: to help the balance of payments, restor confidence in the pound by foreign creditors and clear the way for the incomes policy. We will, next week, analyse the Budget in detail but it is necessary to make an immediate comment on its general line.
For the mass of the people this Budget amounts to a reduction in their purchasing power of some £164
Including the cost of the extra postal charges, the bulk of which will also fall on the ordinary people, this is the equivalent to a wage cut of £250 million, Against this the extra capital gains tax is supposed to bring in £12 million (some City experts say that it will bring in virtually nothing this year) and the cuts in tax allowances for businessmen's entertainment and cars will bring in £435 million.
impossible
it has not
The Government's foreign policy makes it for it to cut arms expenditure, and because got the perspective of waging an aggressive socialist policy at home it has to rely on the credit of foreign bankers. The Week has constantly warned that reforms at home are impossible with a reactionary foreign policy - na we see cuts in living standards looming.
THE WEEK Vol.3. No.14, Page 12