The increases and cuts

Press, 17 December 1976, Page 5

The increases and cuts

NZPA-Reuter London. Typical prices in Britain after the Chancellor’s budget increases are: Bottle of whiskey: £3.75 ($6.95). Bottle of table wine: £1.40 ($2.60). Pint of beer (bitter): 27 pence! (50c). Bottle of sherry: £l.BO ($3.35). Packet of 20 cigarettes: 47 pence (87c). Pound of butter: 30 pence (55.5 c Pound of English cheese: 60 pence ($1.11). In addition, the price of gas may be increased by 10 per cent. Other effects of the minibudget on the man-in-the-street are: Cuts in school meals administration, plus a deferral of the school milk scheme, to save £2OM (S37M) next year and £3OM (SS6M) the year after. Other cut-backs, on school-

building, roads, and environmental services, to reduce public spending by £27OM (SSOOM) next year, and £3OOM ($555M) in the following year. Another £3SM (S6SM) saved by a slow-down in landbuying under the Community Land Act. This is how British industry fares: Cost-escalation scheme to continue for further year. An increase of £I2OM ($222M) next year in unemployment spending. An injection of £IOOM (SIBSM) to help to improve capacity and performance. Another £BOM (SI4BM) in each of the next two years for other aid measures. More selective use of help will save £ISOM (S27BM) next year, and £I7OM (S3ISM) in 1978. In the City: Reserves are given a £SOOM ($925M) boost from the

United States Treasury, and another £3SOM (S6B4M) is on offer from the West

German Bundesbank. The Bank of England to sell enough of Burmah’s former holding in B.P. to give the bank and the Government

a 51 per cent share in B.P. Clearing banks to finance an additional £UOOM ($2037M) in fixed-rate sterling business in each of the next two years. Other cuts: Defence: Down by £IOOM (SIBSM) in 1977/78, and by

J2OOM (S37OM) in 1978/79. Overseas aid: A saving of £SOM (S93M) in each of the

next two years. Civil Service: £3OM ($55.5M) in economies next year, and £IOM ($18.5M) the year after. Nationalised industries: Action to reduce the level of Government finance by £IIOM (S2O4M), and £I3OM (S24OM) over two years.