The budget is remembered for its large tax cuts, and led to high inflation and demands for higher wages, as well as the 1976 sterling crisis when the UK government was forced to ask the International Monetary Fund for financial help.

This was a two-range process involving the budgets of 1972 and 1973, the former of which pumped £2.5 billion[a] into the economy in increased pensions and benefits and tax reductions, all of it largely paid for through government borrowing.

[1][2][3][4] Within 15 months, with sterling's peg with the dollar having become indefensible, Barber was forced to float the pound,[1] resulting in its rapid depreciation and a consequent increase in inflation.

The economic boom did not last, and the Heath government implemented various cuts that led to the abandonment of policy goals such as a planned expansion of nursery education.

[1] The mini-budget held on 23 September 2022 has been compared to the 1972 budget because of the large tax cuts announced by the Chancellor, Kwasi Kwarteng, and the negative impact it had on international markets.