:
13.
We have supplemented these with
taxation and monetary policies which have been
extremely severe.
Towards the end of last year despite
the tough budget, it began to appear as if
consumption was again rising to the levels of
the previous year.
This coupled with the continuing high
level of imports, led us to introduce hire
purchase restrictions and the subsequent
measures of last November: increased purchase
tax, credit restrictions and an import deposit
scheme, and these measures were intended primarily
to correct the rise in consumption.
14.
Our determination to make our policies
effective was also demonstrated by the recent
increase in the bank rate to 8%.
This was not a measure taken for
international monetary reasons but to help the
steps we have already taken to control domestic
credit.
This strategy was continued in this year's
budget. It aimed to increase taxation by £270
million in 1969/70 and by about £340 million in
a full year.
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