Our political correspondent says that the rise in the bank rate has left M.Ps wondering?
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Background: Our political correspondent says that the rise in the bank rate has left M.Ps wondering whether it foreshadows another round of tougher economic measures. The Prime Minister has already said that the Government will not shrink from further action, however severe, to reinforce the pound; and M.P.s are asking whether the Chancellor Mr. Callaghan will bring news of this to the Commons this afternoon during the debate on the second reading of the Prices and Incomes Bill.
Mr. George Brown will open the debate -- and this morning the Cabinet was meeting at Downing Street for pre-debate consultation.
Mr. Douglas Jay, Premier of the Board of Trade, is also concerned in the policy.
Not present today was Mr. Frank Cousins, who resigned from Cabinet over the Bill, and who will be making his first speech from the back benches to lead the Labour opposition to the prices and incomes policy. Fifty-two other backbenchers have promised him their support, but for procedural reasons, they'll only be in a position to register disagreement with the bill, not to vote against it or even to abstain.