How Brown's Budget could muck up Britain's economic experiment

Article Abstract:

The UK's economic position seems quite sound as Chancellor Gordon Brown prepares to deliver his 1998 Budget. However, it is still possible that Brown will implement policies that will have a negative impact on the economy. This is because the UK has become an economic experiment. The main weight of the economy has become focused in a limited number of sectors as responses have been made to market signals, and it remains uncertain whether Brown's Budget will allow this trend to continue or whether there will be a shift towards command and control.

Legislative Bodies, Budget, Column, Economic policy, Brown, Gordon (British politician)

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Money men foresee hard times

Article Abstract:

The PSBR increased more than expected, to more than 14 billion pounds sterling rather than the expected 11-12 billion pounds sterling in 1992, and will be 22 billion pounds sterling in 1993. Therefore Budget tax cuts had to be low. A decline in corporation tax revenues and less income tax because of an increase in the self-employed have caused this. An annual Budget in December focusing on spending plans as well as tax plans were welcomed because it will be ahead of the financial year.

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A role for Keynes in the Budget

Article Abstract:

Keynes ideas that an increased public sector deficit should be used to maintain demand in a recession are revived in the Budget. The difference is that the discretionary policy change is small. Keynes would hope to stabilise investment by lowering interest rates and increasing state-financed public works. He would separate current spending from the capital budget. This is similar to the Labour Party's plans. ERM investment stability may lead to employment stability.

Keynesian economics

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