Economy: Alan Walters diary (MT meeting with Howe & Wass) [“PM told GH he must get the PSBR down or ‘you are for the chop’”] [released 2012]

Document type:	Declassified documents
Source:	Walters MSS (Churchill Archives Centre): WTRS 3/1/1
Editorial comments:	Entry written on Monday 9 February but date subsequently corrected. The full handwritten text of the 1981 diary can be read here. The document is 80MB, so may take time to download.
Importance ranking:	Key
Word count:	1p
Themes:	Executive (appointments), Monetary policy

Monday 23rd February 1981

[Written on page for Monday 9 February then corrected by Walters]

WRONG ORDER

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.

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