June 1979 United Kingdom budget

The budget marked a major change in direction for the UK economy, with an increase in reliance on interest rates and monetary policy to control inflation.

[1] In his budget speech, Howe told the House of Commons "we cannot go on avoiding difficult choices".

[2] The party's election manifesto for that year stated "We shall cut income tax at all levels...a gradual reduction in the size of the Government's income requirement is vital...any future government which sets out to reduce inflation and taxation will have to make substantial economies".

It heralded a significant change in direction for the UK economy, with an increase in reliance on interest rates and monetary policy to control inflation.

[1] Howe's decision to raise VAT was highlighted by the government's critics, who cited the Conservatives' rejection of a pre-election Labour Party press release that had claimed VAT would be doubled if the Conservatives were elected.