R.A.Butler's policies were closely aligned to Labour's Gaitskell, essentially Keynesian principles in action, in response to the grave balance of payments and 'dollar gap', Butler responded with import controls, cutting travel allowances and raising the Bank Rate, following the boom in 1952-3 starting in America due to the end of the Korean War, Butler cut income and purchase tax which were popular decisions that improved standards of living, economic growth was stimulated through creating and maintaining full employment