Tories plan concessions

Press, Volume CXI, Issue 32663, 20 July 1971, Page 13

Tories plan concessions

(N.Z.P.A.-Reuter—Copyright)

LONDON, July 19.

A package of financial concessions aimed at stimulating the British economy will be presented to Parliament today by the Chancellor of the Exchequer (Mr Anthony Barber).

A special meeting of Cabinet Ministers has been summoned for this morning, a few hours before Mr Barber makes his announcement in the House of Commons.

The Chancellor is expected to receive full Cabinet ap-l proval for his concessions,! which are being interpreted! as an attempt to improve; Britain’s economic climate before entry into the European Common Market. Mr Barber is expected to concentrate on lowering purchase tax and easing hire-pur-chase terms to stimulate consumer demand and to in-1 crease employment in the manufacturing industries. By doing this, he hopes to increase Britain’s rate of economic growth by’ 1 per cent from the current level, of about 3 per cent. Mr Barber’s concessions follow hard on the heels of last week’s proposals by the Confederation of British Industries to curb price increases to a maximum of 5 per cent. The leaders of nationalised industries are understood to have told Mr Barber that they are ready to fall in with private industry on the C. 8.1. proposals, provided that the Government is prepared to offer help to restore any resulting deficits. Mr Barber is expected to include in his Commons announcement details of just how far the Government will go in helping the nationalised industries out of trouble caused by keeping prices: down.

Added to the price restraint

proposals and Mr Barber’s reflationary measures is industry’s new mood of optimism, generated by last week’s improved overseas trade figures.

All three factors, the Government hopes, will clear the way, in terms of public opinion, for Parliament’s October vote on entry into the Common Market.