Consumer confidence begins to return with stronger growth in retail sales.
Consumer credit growing fats helped by reductions in the interest rate during 1996, though interest rates nudged up again towards the end of the year. Increased inflationary pressures nudged it upwards in the second half of the year, but earnings growth still low. Balance of payments improving considerably with a very small deficit, due to strong growth in exports and particularly car sales. European football championship helped boost invisible earnings from tourism. 1p cut in income tax standard rate - 24p to 23p Usual increases in cigarettes and most booze, but beer and wine unchanged.