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Key facts on 1991
1991 - Still recession. Despite continuous promises from politicians - no recovery in sight. Growth for the year -2% (that's a minus, not a dash!). December 1991 - Maastricht treaty signed, promising-
- Single currency by 1999 Monetary union
- Social policy - the 'social chapter' on worker's rights Regional aid
December '91 - BT 11 share offer - around 23% more of BT sold raising £5.35bn.. Interest rates progressively headed down from 14% in January to 10.5% in September. Sterling fluctuated over the year with a bit of a dive in late November to the ERM lower limits, but ended the year at $1.83.
Norman Lamont's first Budget - not desperately exciting, but if you stayed awake to the end you would have heard - increase in VAT to 17.5%, increased relief for many poll tax payers and the usual increases on booze and fags! As a result of recession (mainly) the PSBR was on its way up. £10.5bn for 1991/2.
Unemployment heading up as well, for the same reason - 2.6m out of work by the end of 1991, but inflation is coming down - 4.6% for the year, so perhaps the recession had a positive effect!
Growth in Europe was slowing rapidly, though UK still beat them all (in the wrong direction). Gradual shift away from Thatcherism, with less emphasis on public spending cuts and the first stages in the abandonment of the Poll Tax.
Heading towards 1992 'Single Market' with 'harmonisation' of banking and financial services, tax systems and various products and services. Autumn statement prepared ground for an election with spending increases on health, public transport and education.
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