Economic Developments: 1981 Budget Flashcards
How was Howe’s 1981 budget significant in terms of the post-war consensus?
It showed a full abandonment of the post-war consensus
What did Howe announce about taxes in the 1981 budget?
£4 billion in taxes would be raised
Why did Howe announce this about taxes?
To help further reduce inflation
How many economists opposed the 1981 budget?
360
How many ex-chief Treasury economic advisers were against the 1981 budget?
5
What did Thatcher and Howe decide to do with the 1981 Budget despite opposition to it?
They went through with it
What was the impact of the 1981 budget in terms of economic growth?
It made way for 8 years of economic growth
What did inflation fall to by 1983 due to the 1981 budget?
It fell to 4.5%
What was the significance of the Conservatives going through with the 1981 budget despite opposition?
It showed they were not afraid of taking risks
