BRITAIN: Muddling Through

The British government last week invoked additional emergency measures to deal with what Prime Minister Edward Heath called the "gravest crisis since World War II." Burdened by fuel shortages, widespread labor strife and an unprecedented trade deficit expected to reach $3.5 billion this year, Chancellor of the Exchequer Anthony Barber announced a $3 billion slash in government spending. It was the largest budget slash in British history and signaled the end of Heath's go-go plan for economic prosperity.

The biggest deduction will come from the capital spending of nationalized industries ($600 million)....

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