Nice while it lasted

摘要

The economy has done well under Labour. Gordon Brown, the chancellor of the exchequer, can boast a triple triumph of steady growth, low inflation and low unemployment. This record stands in sharp contrast to other big European economies such as Germany. Britain, for so long the poor relation, has become one of the richest countries in Europe. However, not everything that has gone right is because of Mr Brown: the roots of Britain's economic renaissance predate Labour's election victory in 1997. And not everything has gone right: the generally favourable macroeconomic picture has some nasty blemishes, notably an overvalued housing market and a persistent current-account deficit. The economy retains some worrying weak points, especially low productivity; businesses are suffering from the regulatory costs that Labour has heaped on them; and Britain is raising the tax burden whereas the trend in other developed economies is to reduce it.