Large scale document archive

1981 Mar 10 Tu
Archive (Hoskyns MSS)

Economy: Hoskyns diary (Cabinet reaction to budget) [Prior strongly attacks but with little support]

Document type: Declassified documents
Source: Hoskyns MSS (privately held)
Editorial comments: Reproduced from John Hoskyns Just in Time (2000), p281
Importance ranking: Key
Word count: 137
Themes: Economy (general discussions), Monetary policy, Public spending & borrowing, Taxation, Media

Sunday 15 March 1981

... Sat in with them at No.10 for coffee but no briefing on Cabinet discussion of Budget - usual secrecy paranoia from MT. However, David was there at Cabinet and it went rather well. As soon as Geoffrey had finished outlining a v. deflationary budget (no Rooker-Wise at all - not the right way, in our view, too regressive - 2% off MLR, petrol, drink and tobacco taxes/duties well up) Jim Prior jumped in to attack, v. strong, red in the face, saying it was a disastrous budget etc. But he got no real support - just a little from Ian Gilmour and Peter Walker - so began to look isolated and foolish as other more hard headed people (Fowler, Nott) asked whether he'd prefer higher PSBR, higher MLR and a higher pound?