Effect Of New Cuts So British Economy

Northern Advocate, 25 October 1947, Page 7

Effect Of New Cuts So British Economy

LONDON, Fri. (1.30 p.m.).—Cuts of £200,000,000 in capital expenditure which Sir Stafford Cripps referred to on Thursday will affect practically every aspect of Britain’s national life, says the Daily Telegraph’s political writer. Building will be most seriously affected by Government development schemes for health, education and transport will be curtailed, abandoned or postponed.

The Government will suspend work on civil airfields and will limit supplies of goods vehicles and buses. The War Office and Air Ministry will postpone all major undertakings. The Government will also cut steel allocations ail round. The shipbuilding industry will receive 15,000 fons less each quarter, but this economy will fall on ships for sale, not on vessels for Britain’s own use.

■ The supply of goods vehicles for the home market will not be allowed to exceed 50,030 in 1948.

Private car prduction will be limited to the same figure. The total number of buses and coaches for the home market must not exceed 4000. The Government, in addition to restricting the output of vehicles, decided to postpone major road developments, including the Severn and Dartford tunnels, and cut the road maintenance force in order to release 20,000 men for other work. The post office will not install new telephones and will confine itself only to vital maintenance and repair work. It will make new installations only for most urgent purposes. The BBC programme will bo reviewed on a similar basis. NO NEW BUILDINGS The Government will also ban extensions of offices and new buildings for the civil service. The Ministry of Health will undertake only the most urgent water and sewage works. Present stocks of tobacco are expected to last until July, 1948, if the present rate of consumption doels not increase. The Government hopes consumption will dwindle to such an extent that present stocks will last through 1948 to 1949. The Daily Express political correspondent says the slashing of home car production from 90,000 to 50,000 took leaders of the car industry by surprise. Sir Miles Thomas, vice-chairman of Morris Motors said: “Only a fortnight ago we agreed on 90,000 with the Ministry. “OUT OF THE BLUE” “This new decision comes right out of the blue without any consultation. “The new figure is cutting it very fine. “When the police, London taxis, various ministries, and the Coal Board have had their cut, there will be very few left for private motorists.” The Times Parliamentary correspondent says that agriculture will receive all its. requirements to carry out its expanded programme. Buildings and civil engineering work required for the Central Electricity Board, National Coal Board and other bodies connected with the mining industry will proceed, but care will be exercised to see that no unnecessary building is undertaken.