HISTORIC PRESS RELEASE : On Course to Achieve Economic Stability [August 1998]

The press release issued by HM Treasury on 12 August 1998.

Commenting on today’s Inflation Report from the Bank of England and today’s Labour Market Statistics, Stephen Byers, Chief Secretary to the Treasury, said:

“I welcome today’s good news on the economy showing more jobs, falling unemployment and a welcome reduction in earnings growth.

“At a time of instability in the international economy, especially in the Far East, it is vital that we build a stable economy capable of sustained and steady growth, in contrast to  the cycle of boom-bust that has plagued our economy in the past.

“Today’s Inflation Report from the Bank of England shows that following the Government’s tough action to get the economy back on-track, growth is set to strengthen through next year with inflation falling to its 2 1/2% target.

“The projections take full account of the Government’s prudent spending plans which lock in the fiscal tightening already achieved. The Bank confirm that borrowing is set to fall by 3 1/2% of national income, exactly as set out in the March Budget.

“Today’s news shows that we are on course to achieve economic stability.”