Economy: Alan Walters diary (budget) [employment meeting; Prior’s spending will ruin stratey][released 2012]

Wednesday 22nd July 1981

1.30-2.45 PM meeting on employment measures (GH [Sir Geoffrey Howe] and LB [Leon Brittan]). PM said Jim Prior thinks he is going to Northern Ireland - but not so. Keen on my scheme and mad at DHSS intransigence in saying they cannot revisit NIC for 16 and 17 year olds under £40 a week. Told GH and LB they must - got 550,000 employed etc. Cannot stand JP s [Jim Prior] £1.5 Bn - would ruin strategy. GH and LB are thinking about £200m (TOTAL including JP s £93m)

3.00 - Bill Poeton - attack on clearing bank lending (too short) - his advisor was pursuing a free lunch arrangement.

Party for Jim

5.00 - Department of Employment meeting (David S). Both economists old students. Chosen cost per job so that all about same.