HISTORIC PRESS RELEASE : IMF Reports Greater Transparency in UK Economic Decision Making [April 1999]

The press release issued by HM Treasury on 21 April 1999.

Improvements in UK economic decision making and transparency and accountability in four key areas of economic policy and decision making are highlighted in an International Monetary Fund (IMF) report published this week.

Welcoming the report, Chancellor of the Exchequer Gordon Brown said:

“Transparency provides a sound basis for policy. It ensures that both Parliament and public can scrutinise the Government’s economic and fiscal plans, and supports the efficient operation of financial systems.

“The IMF has taken the lead in developing international standards against which we, and other countries, can evaluate decision-making practice. Independent assessments of transparency, such as this report, can play an important role in promoting efficient financial markets and transparent policy.

“This report recognises the Government’s efforts to promote transparency, which have produced an open and accountable decision-making framework. We will continue to move in this direction to ensure that all policy decisions are made in Britain’s best interest.”

The IMF report identifies important strides in enhancing UK transparency practices in key areas of economic policy, with high levels of transparency in four areas assessed: data dissemination; fiscal policy; monetary and financial policy; and disclosure aspects of banking supervision.

It indicates that the UK exceeds many requirements of the IMF Code of Good Practices on Fiscal Transparency, and is highly transparent regarding underlying principles of the Code of Good Practices on Transparency in Monetary and Financial Policies.

The IMF also identified some areas where further improvements might be made: some aspects of the Special Data Dissemination Standard, better integration of information on contingent liabilities, and a more detailed breakdown of government spending.