How do we build on economic stability?

The cautious fiscal policy of the current government is one of its stronger areas, and seems to have been largely overlooked (perhaps because it has been reasonably successful). While it’s only really being tested just now, as we come out of a stagnant period, Gordon Brown really does seem to have delivered on his promise to smooth out the economic cycle. The combination of borrowing rules and an independent Bank of England seem to have done the trick. Although there’s certainly no room for complacency, I say “steady as she goes”.

There are plenty of questions still to be answered about how we improve the UK’s economy in general, but these are really to do with other things, such as education, R&D and taxation, that have an effect on the economy, but are not (or should not be) per se about fiscal policy.

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Last updated 2004/10/31