Reasons to be negative about the UK’s growth prospects


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Tax and Fiscal Policy
In the 15 years to 2007, the British economy had on average faster growth (by about 0.5% to 0.75% a year) than its large European neighbours. A similarly benign context of rising trend output and tax revenues would be very helpful for a new government seeking to reduce government borrowing. There are, however, a number of reasons to be negative about the UK’s prospects for growth.



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