BRACED FOR NEW AUSTERITIES

Chronicle (Levin), 19 October 1949, Page 5

BRACED FOR NEW AUSTERITIES

, .1 .{J.C.A,

Reuter,

Framing Of Further Cuts Headache For British Government a . •> .

, Copyright) *

Received Wednesday, 9.10 a.m. LONDON, October 18. Members of Parliament returned from the summer vacatlon today braced for new austerity shocks. Mr. Herbert Morrison, Lord President of the Council, told the House of Commons that the Prime Minister, Mr. Attlee, intended to make a statement next Monday on the Government's economic and financial proposals. Mr. Morrison added: "The Prime Minister is anxious to make a statement as soon as possible, but the House will appreciate that there are a number of departments involved, which must be properly consulted if proper and firm conclusions are to be reached."

Reuter's political c.orrespondent Says that the Governmeht's postponement of the "cuts'' aimouncement probably means that some Ministers are putting for ward objections or alternative suggestions to the proposed economies in their departments. It is also possible that others feel that the economy programme does not go far enough, and they may be advocating other methods of saying. Before Mr. Attlee makes his statement to the Commons there will now be, firstly, a big meeting of the Parliamentary Labour Party behind closed doors tomorrow at which Mr. Attlee and the Chancellor of the Exchequer, Sir Stafford Cripps, are certain to outline the general extent of the coming cuts without goiiig into specific details; secondly, a further meeting of , Cabinet's Economic Policy Commit- ' tee, which is framing the cuts; and,

thirdly, at least one, and possibly two, more full Cabinet meetings at which the cuts will be rediscussed. fThere are moves.to secure a full Commons debate on the announeement next week. If this takes place on Wednesday or Thursday it would give members virtually two days in which to consider details* of the announcement, which will be a comprehensive one. Framing the cuts has been a tremendous task. Several hundred million pounds are involved ahd most if not all Government departments will be affected, although it has been agreed not to touch defence except 'for administrative economies, the social services or housing. The direction of labour is not likely to be resorted to in order to s'tep up the export industries. The Government favours the removal rather than the reimposition of controls.