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Pre-Budget Report
HM Treasur
25 November 1997
A proposal to implement a Code for Fiscal Stability was announced by Chancellor Gordon Brown today.
The Chancellor said that the Code, proposed in his Pre-Budget report, would complement the reforms to monetary policy that he introduced during his first week in office. He said:
"Openness and transparency in economic policy-making are crucial if people and businesses are to have the confidence to plan and invest for the long-term. By being open, governments can rebuild trust that economic policy will operate in a way that delivers high and stable levels of growth and employment.
"My reforms to monetary policy have given Britain one of the most open and transparent frameworks for setting interest rates seen anywhere in the world. The new Code will reinforce stability, openness and credibility in fiscal policy."
The Chancellor explained that the Code, which will be enshrined in legislation, would serve a number of purposes. It would make clear the principles and rules which underpin the Government's approach to fiscal policy. In addition, it would also provide for the publication of a wider range of information about the public finances, and would commit the Government to following best practice standards of accounting. This will make it easier for Treasury Select Committee, Parliament and the public to scrutinise fiscal policy. The Chancellor said:
"The Code demonstrates further the Government's commitment to a commonsense approach to managing the public finances. By publishing a Code, we will be bringing openness and credibility to fiscal policy in a way that no other British Government has ever done."
The Chancellor ended by inviting comments from the public. He said:
"I welcome the views of the public on how we can best take this proposal forward. Only by working together can we ensure that we put in place a fiscal framework that best promotes Britain's long-term economic interests."
1. A discussion paper setting out the proposal for a Code of Fiscal Stability in more detail can be found in the Pre-Budget report press pack. Members of the public can obtain copies from HM Treasury Public Enquiry Unit (see below).
Press enquiries to: 0207 270 5238
Non-media enquiries to: 0207 270 4860/4870/4880
Pre Budget 1997 Press Notices index page
