Monday 23rd February 1981
[Written on page for Monday 9 February then corrected by Walters]
Call from TL [Tim Lankester] [Different pen used from this point] M + GH [Sir Geoffrey Howe] (with Wass [Douglas Wass] ) met on budget. M pursued MY line that we needed a rise in taxes and would agree to a 1 penny rise in Standard rate (I had said a 2 or best a 3 penny rise was right, but at least it is something). Have I had a delayed impact? I do not really believe it - nor did Tim [Tim Lankester]. He said PM told GH that he must get the PSBR down or “you are for the chop” - very unlike her. Still wait + see.
Told Paddie [Paddie Walters] about it and she was also skeptical.