NEWS: 1996 BUDGET; ‘Feelgood’ Budget set to boost expenditure

Advertising agencies and clients were united this week in welcoming Kenneth Clarke’s Budget, which they expect will help maintain the ‘feelgood factor’.

Advertising agencies and clients were united this week in welcoming

Kenneth Clarke’s Budget, which they expect will help maintain the

‘feelgood factor’.



The Chancellor’s prediction that consumer spending will grow by more

than 4 per cent next year is in line with Advertising Association

figures that are forecasting an adspend rise of about 4.5 per cent in

1997.



At the same time, there is no surprise within the industry that Clarke

should have chosen both to claw more tax from tobacco manufacturers and

to force a rise in the price of alcopops.



AA executives are particularly pleased that a package of measures to

help businesses will have a knock-on effect on newspapers, where the

highest levels of recruitment advertising for 20 years are set to

increase still further.



Andrew Brown, the AA’s director general, said: ‘Advertising has always

reflected the nation’s economic health and a Budget which sets the

economy on course for sustained strong growth is good for the business.’



The most important challenge to the Government now was to ensure the

economy did not overheat, he said.



‘Everybody is concerned about inflation and rising interest rates and

the Government is still spending more than it should,’ Brown added.



Nick Phillips, director general of the Institute of Practitioners in

Advertising, said: ‘The Budget indicates continued good news on consumer

spending, which means a healthy outlook for most of our members.’



John Hooper, his counterpart at the Incorporated Society of British

Advertisers, said: ‘This Budget indicates a steady hand on the tiller

and the fact that things are moving steadily ahead. The forecast on

consumer spending reflects what we’re already finding in the

marketplace.’



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