Treasury Orders 5 Per Cent. Reduction

Chronicle (Levin), 26 August 1949, Page 5

Treasury Orders 5 Per Cent. Reduction

(N.Z.P.A.-

Reuter

. Copyright)

Received Friday, 10.12 a.m. LONDON, Aug. 25The British. Government today ordered all-rpund cuts in Government spending. A five per cent reduction at least is believed to be the tar-, get. This represents a £150,000,000 cut on a £3,000,000,000, Budget. The cuts are bound to. mean / the dismissal of some civil servants. The Treasury warning to all spending departments to trim their estimates for the next year.'s Budget laid emphasis on the forthcoming Washington dollar talks. Official quarters said that# the Treasury instructions had' not been communicated to the United States, nor had they been consulted about it. ^ The Treasury emphasised in a verbal notice to departmental heads that the five per cent cut should not be regarded as a maximum target. The Treasury action ha? come two months before the departmental estimates ^ were normally prepared. This call for economy is the result of a Government decision. Although the request for cuts had been made to all departments, it is probably realised that service departments in the light of present wprld conditions are faced with heavy commitments. Reuter says it is understood that no direction has been given about the precise form of the economie's but politica, sources say that the Treasury is brmging "heavy pressure for as much economy as possible.''