HISTORIC PRESS RELEASE : Government Learns Economic Lessons from the Past [November 1997]

The press release issued by HM Treasury on 24 November 1997.

Learning the lessons from the past is the key to successfully running Britain’s public finances, says a Treasury paper published today.

The paper, ‘Fiscal policy: lessons from the last economic cycle’, identifies two key lessons for fiscal policy based on the experience of the last economic cycle:

• adopt a prudent approach; and
• an open and transparent fiscal policy.

Chancellor of the Exchequer Gordon Brown said:

“The Government is determined to prevent a return to the boom-bust cycles of the past, and that means learning the lessons from the last economic cycle.

“These important lessons have been taken on board in the design of the new fiscal framework, which will be set out in more detail in Tuesday’s Pre-Budget report. They confirm that this is the time to remain vigilant; there will be no relaxation of our tough approach to public spending.

“Just as the new framework at the Bank of England was designed to deliver low inflation, so the proposed Code for Fiscal Stability aims to encourage economic stability and will help to prevent history repeating itself.”