OECD Thumbs-Up for UK Economic Policy

That the long-term economic plan of the Conservative-led Coalition is working for the United Kingdom is confirmed by the OECD in this survey linked to below.

Why would you as a voter risk the UK’s economy by handing control of it back to Labour?

The OECD, as a neutral independent organisation, is broadly positive on the policies and achievements of the present UK government.

Voting for the Conservatives in the General Election would ensure that these responsible policies continue.


At a press conference at the Treasury on 25th. February, the OECD Secretary General with the Chancellor presented a positive report on the UK economy.

Key conclusions are:

– UK GDP growth in 2014 was 2.6%, the strongest performance among G7 countries;
– The recovery has benefitted from wide ranging domestic policy measures;
– While productivity growth should be accelerated, employment is at a record level;
– Fiscal policy has included well-chosen consolidation measures;
– With the exception of the housing sector where inflation needs careful management, inflationary pressures have been low;
– Although public debt continues to rise, the budget deficit has been significantly reduced since its 2009 peak;
– Infrastructure underinvestment is being tackled by the authorities within tight fiscal constraints;
– Important regulatory reforms have been implemented in the banking sector to address financial stability risks;

While generally favourable on UK economic policy, the OECD makes important recommendations on future priorities:

– The Bank of England should begin to tighten monetary policies to meet emerging inflationary pressures
– fiscal consolidation needs to be continued in the medium term;
– further efficiency gains are needed in health and education;
– The successful National Infrastructure Plan should be used as the basis for further progress;
– Public/private partnerships for infrastructure developments should be continued and strengthened;
– Regulatory constraints to boost housing supply should be further relaxed.

Peter Huggins
BCiP Member

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