NEW AUSTERITY PROGRAMME

Press, Volume LXXXV, Issue 25936, 17 October 1949, Page 7

NEW AUSTERITY PROGRAMME

Cuts Expected In Britain DISCUSSIONS BY CABINET (A'.Z. Press Association—Copyright) (Rec. 10 p.m.) LONDON, October 15. A new austerity programme, which will govern British economy until the General Election next year, is expected to be announced by Cabinet this week. Increased taxation, the reimposition of the rationing of clothes and household textile goods and food and petrol cuts are expected to be included in the programme. There may also be a regulation making unofficial strikes illegal. The political correspondent of the “Sunday Dispatch” says there has been a clash in the Cabinet about the new programme. “The Prime Minister (Mr Attlee), Mr Herbert Morrison, and Mr Ernest Bevin are standing together to railroad through Cabinet this week crisis policies, which cut dead against Socialism.” says the correspondent. “There are murmurings of Ministerial revolt and demands that the workers must be compensated for sacrifices in wages.” It is understood that on October 18 Cabinet will consider plans demanding that trade unions shall abandon restrictive practices and work all-out for recovery; longer hours in some industries; and an increase in the weekly national insurance payment by both employees and employers. Cuts in food, including sugar, may shock the housewife, cut some of these may be temporary. The political correspondent of the “Sunday Express” says the Economic Committee of Cabinet will make the final draft to-morrow of a plan, imposing new’ austerities on Britain. It will pinch every man. woman, and child in the country. It is understood that it has been agreed to release 5000 temporary civil servants by Christmas for productive work. Other proposals believed to be under consideration are a cut of 10 per cent, in capital expenditure, a cessation of all office and satellite town building, and the reimposition of the excess profits tax. Included in the Government’s programme wili be an appeal to the workers to give up the five-day week for a year or two and return to five and a half days a week. Reuter says the Government will attempt to cut costs in capital investment. Government administration, and dollar imports. The cuts in dollar purchases are expected to be in accordance with the plans discussed at Washington—2s per cent., or at the rate of £100,000.000 a year. The Government will not allow the proposed capital investment cuts to affect the social service benefits of the “welfare State.” but it is expected to effect economies in these services by postponing new undertakings such as hospitals, health centres, schools, and other buddings. The Government is trying to secure a considerable reduction in the expenditure of all ministries during the remaining half of the present financial