Conscription costs

"Before analysing the effects of Mr. Holland's policy statement, two other remarks of his should be noted. He said, "it will be necessary to find some millions of pounds to meet the cost of the new military training scheme authorised by the people last year. Then we must make provision to stop a recurrence of the deficit in the Social Security Fund."

What will be the consequences of these actions? Mr. Holland says that the removal of subsidies will lead to a rise in the cost of living of about 4%. Mr. Holland has here left us at the real beginning of the problem. As that well-known Tory economist; Professor Tocker, said, "if prices rise, on an average and over the whole field it will have been caused less by the abolition of subsidies than by changes such as the devaluation of sterling and proposed increases in wages and social security benefits, and subsequently in costs."