OECD produced a major report analysing worldwide unemployment. Petrol, alcohol and tobacco bore the brunt of the increases instead. The Royal Commission on Environmental Pollution report on transport painted an alarming picture of rapidly increasing car use, worsening congestion and deteriorating air quality. Service sector growing well, but construction and manufacturing growth very hesitant. By the end of the year average prices had fallen very slightly.
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.