Brown Hands Reins to King

Daily MailMarch 18, 2004

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Summary


GORDON Brown has largely left the economy on autopilot for the next year. After the handouts to pensioners and other minor adjustments, the net effect is a giveaway of Pounds 725m.

Putting aside the debate in the City about whether the Chancellor will break his own 'golden rule', much of the attention in the coming months will be on monetary rather than fiscal policy. Having effectively ruled out tax increases or real public spending cuts before the next election, Brown has in effect passed responsibility for steering the economy to the Bank of England.

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Extract


Brown Hands Reins to King

Mervyn King and the Monetary Policy Committee (MPC) have a difficult task.

Much of Brown's Budget policy depends on healthy economic growth in the year ahead.

But as we learnt in Madrid last week a...

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