‘The real choices facing the Cabinet’

Numerous Cabinet meetings were held between October and December 1976 to discuss the terms of an IMF loan.

The crucial meeting was on 1 December when Tony Benn, Secretary of State for Energy, presented his paper ‘The real choices facing the Cabinet’, in which he argued for an alternative economic strategy, including reflation and import quotas.

There was a lively discussion, but Benn’s proposals were rejected, and the Government went on with acceptance of the loan and consequently, there were increases in taxation and public spending cuts.