HM Treasury 
96/97                                           31 July 1997
______________________________________________________________
  
            MEASURES ARE PUT IN PLACE FOR THE
           COUNTRY'S LONG-TERM ECONOMIC FUTURE      

Key measures to improve the long-term performance of the UK
economy became law today as the Finance (No2) Act 1997
received Royal Assent, reflecting the Government's pledge to
put its Manifesto promises into action. 

Commenting on the completion of the legislation required to
implement the Summer Budget's measures, Financial Secretary
Dawn Primarolo said:

" We said we would introduce measures for long-term stability
- and we have, with a 5 year deficit reduction plan.

We said we would introduce measures to encourage investment -
and we have.
 
We said we would introduce a windfall tax to fund a
comprehensive scheme to get people off welfare and into work -
and we have.

We said we would reduce VAT on fuel to 5% - and we have.  

And we have done so much more, including providing extra money
for our priority areas of schools and the health service. 

This is a Government which keeps its promises. We are
determined to equip the country properly for the future by
putting in place the long-term framework for stability,
investment and employment that it needs."




NOTES TO EDITORS

The Summer Budget was on the 2 July 1997. The Finance Bill was
published in draft on Friday 4 July. The Finance Bill was
published on Tuesday 8 July. 2nd Reading of the Bill was on
Thursday 10 July. 3Committee of the Whole House took place on
15-16 July. Standing Committee was from 17-23 July in 9
sittings.Report stage and Third Reading was on 28-29 July. The
Bill went to the Lords on 31 July and was also enacted on that
day.