OECD praises Coalition’s first budget
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The Organisation for Economic Cooperation and Development has described Chancellor George Osbourne’s first budget as “courageous and appropriate” in a report entitled United Kingdom: Policies for Sustainable Recovery.
The report, which outlines a series of actions the UK needs to follow to bolster its economic recovery and boost confidence, says the Coalition’s first budget last month was an “essential starting point” in that it signalled a credible fiscal consolidation plan, while at the same time it still supported the recovery.
To improve upon fiscal stability the OECD says the retirement age needs to be raised while full independence needs to be ensured for the newly created Office for Budget Responsibility. Current policy changes may seem daunting, but the UK has great strengths and with the right policy mix is among the countries best positioned to flourish in an increasingly knowledge-based world economy,” says the report. The report also calls for reform of the regulatory framework of the financial sector. It says a “firewall” needs to be created between high risk investment banking and commercial banking.
Angel Gurria, the secretary general of the OECD, says: “To achieve a sustainable recovery, the UK must take broad policy in action in areas such as financial markets, green growth and innovation, employment and equity, health, education and public governance.
“I am confident that the UK will meet these challenges and look forward to working with the government as it successfully balances recovery with the need to reduce its deficit and the burden of debt.”
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