HISTORIC PRESS RELEASE : IMF commend “Prudent and Credible” UK Economic Policy [March 2003]
The press release issued by HM Treasury on 3 March 2003.
At their discussion of the UK economy on 26 February, IMF Directors “commended the UK authorities for the pursuit of prudent and credible economic policies in the context of a sound medium-term policy framework” and noted the “strong performance of the UK economy” based on low inflation and sustained output and employment growth.
Based on a wide-ranging assessment of the UK economy prepared by IMF staff, Directors also considered the outlook for the UK economy including possible risks, the conduct of monetary and fiscal policy, measures to enhance productivity and employment, and plans for investment in public services.
Commenting on the IMF’s report, the Chancellor, Gordon Brown, said:
“As the IMF Directors accept, our tough action to restore the public finances to a sound footing and to keep inflation under control, means that we have been able to weather the global slowdown while keeping public debt to GDP low. But with continued uncertainties in the world economy, it is important that we maintain our discipline and stick to our long-term course. So there will be no relaxation of the fiscal rules, no quick fixes and, with the recent Public Sector Pay Review Body recommendations coming in at around 3 per cent, no relaxation of our discipline on public sector pay.
“The IMF Directors also recognise the need to respond to the demand for better public services and rightly highlight the importance of reform to increase the efficiency of public spending. While rejecting user charges where they would be at the expense of equity and efficiency, reform must enhance public sector productivity and decentralise control to where it can be exercised most effectively in the interests of the users of public services.”
As in the previous three years, at the request of the UK Government the IMF is today publishing its Article IV staff report on the UK economy in full, along with the record of the IMF board discussion, and the UK’s statement in the board meeting.
