Economic Developments: 1981 Budget

Question 1

How was Howe’s 1981 budget significant in terms of the post-war consensus?

Answer 1

It showed a full abandonment of the post-war consensus

Question 2

What did Howe announce about taxes in the 1981 budget?

Answer 2

£4 billion in taxes would be raised

Question 3

Why did Howe announce this about taxes?

Answer 3

To help further reduce inflation

Question 4

How many economists opposed the 1981 budget?

Answer 4

360

Question 5

How many ex-chief Treasury economic advisers were against the 1981 budget?

Answer 5

5

Question 6

What did Thatcher and Howe decide to do with the 1981 Budget despite opposition to it?

Answer 6

They went through with it

Question 7

What was the impact of the 1981 budget in terms of economic growth?

Answer 7

It made way for 8 years of economic growth

Question 8

What did inflation fall to by 1983 due to the 1981 budget?

Answer 8

It fell to 4.5%

Question 9

What was the significance of the Conservatives going through with the 1981 budget despite opposition?

Answer 9

It showed they were not afraid of taking risks