From Prudence to Profligacy : How Gordon Brown Undermined Britain's Public Finances

Abstract

International audienceHaving begun by pursuing an extremely conservative fiscal policy during the late 1990s, Gordon Brown, as Chancellor of the Exchequer and then Prime Minister, presided over a massive expansion in public spending to improve public services. This expansion of spending was justifiable in many ways, given poor investment in public services during the Thatcher-Major years. But it was arguably not sufficiently financed through taxation, and direct taxation in particular. The result was a run up of public deficits prior to the current financial and economic crisis, which broke the government's own fiscal rules. This in turn prepared the way for a substantial deterioration in public finances when the current crisis broke, a deterioration which may take years, if not decades to set right

Between America and Europe: transatlantic influences on the policies of Gordon Brown

“…Sowels charts the evolution of Brown's political beliefs from Scottish, Labour party principles and towards modern, Thatcher-based understandings on the economy, to the influence of Balls. 9 Many authors have sought to identify Brown's positions with certain theories. From neo-liberal, Washington Consensus positions and monetarist philosophies to Keynesian, new-Keynesian and post-Keynesian theories, a lively theoretical debate on Brown's various policies has been presented.…”