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.’
