The World - News from March 15, 1989

The Conservative British government of Prime Minister Margaret Thatcher set aside its tax reforming zeal and unveiled a budget more cautious than expected, underscoring its commitment to combat inflation with high interest rates. Chancellor of the Exchequer Nigel Lawson announced in the House of Commons that the government will leave income tax rates unchanged in the fiscal year beginning April 1. He also projected a $24-billion surplus, much larger than expected. Neil Kinnock, leader of the opposition Labor Party, condemned the budget as “a botched attempt to make up for the chancellor’s excesses and messes of last year.”