Denis Healey said that, for once, he was not asking anyone to make any sacrifices, instead offering £2,400 million in tax cuts to stimulate the economy. Labour MPs appeared subdued, but Liberal MPs were delighted, claiming to have influenced the chancellor during their brief alliance with Labour. Conservative leader Margaret Thatcher claimed the tax cuts would soon disappear without being noticed.
Capital gains tax
Capital gains of up to £1,000 a year exempt from tax, with reduced rate of 15% (rather than 30) for gains under £5,000.
Minimum lending rate
Raised from 6.5% to 7.5%.
Corporation tax
Eased for small companies.
School meals
Planned rise in prices are scrapped.
Duties
20 high-tar cigarettes up by 7p.
