June 1979 United Kingdom budget

1979 (1979) United Kingdom budget

Presented	12 June 1979
Parliament	48th
Party	Conservative Party
Chancellor	Geoffrey Howe
‹ April 1979 1980›

The June 1979 United Kingdom budget was delivered by Geoffrey Howe, the Chancellor of the Exchequer, to the House of Commons on 12 June 1979. It was Howe's first budget and the first of the first Thatcher ministry, which had been elected a few weeks earlier. It was also the second budget to be delivered to Parliament in 1979. 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. It is also noted for its introduction of substantial tax cuts, such as reducing the top rate of income tax from 83% to 60% and the basic rate from 33% to 30%. The budget also saw an increase in VAT from 8% to 15%.^[1]

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